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• | "MFS" and the "Company" refer to Manitowoc Foodservice, Inc. and its consolidated subsidiaries, after giving effect to the internal reorganization and the Distribution, or, in the case of information as of dates or for periods prior to its separation from MTW, the combined entities of the Foodservice business, and certain other assets and liabilities that were historically held at the MTW corporate level, but were specifically identifiable and attributable to the Foodservice business; and |
• | "MTW" refers to The Manitowoc Company, Inc. and its consolidated subsidiaries, other than, for all periods following the Spin-Off, MFS. |
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Useful lives | |
Patents | 10-20 years |
Engineering drawings | 15 years |
Customer relationships | 10-20 years |
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 15 |
Computer hardware and software | 2 - 7 |
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Fair Value as of December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Commodity contracts | — | 0.9 | — | 0.9 | ||||||||||||
Total current assets at fair value | — | 1.5 | — | 1.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total non-current assets at fair value | — | 0.2 | — | 0.2 | ||||||||||||
Total assets at fair value | $ | — | $ | 1.7 | $ | — | $ | 1.7 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.1 | — | 1.1 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
Fair Value as of December 31, 2015 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Total assets at fair value | $ | — | $ | — | $ | — | $ | — | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||
Commodity contracts | — | 3.1 | — | 3.1 | ||||||||||||
Total current liabilities at fair value | — | 3.2 | — | 3.2 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Commodity contracts | — | 0.4 | — | 0.4 | ||||||||||||
Total non-current liabilities at fair value | — | 0.4 | — | 0.4 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 3.6 | $ | — | $ | 3.6 |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or |
Level 3 | Unobservable inputs for the asset or liability |
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Units Hedged | |||||||||||||
Commodity | 2016 | 2015 | 2014 | Unit | Type | ||||||||
Aluminum | 1,663 | 1,215 | 1,657 | MT | Cash flow | ||||||||
Copper | 746 | 472 | 820 | MT | Cash flow | ||||||||
Natural gas | 56,416 | 49,396 | 56,792 | MMBtu | Cash flow | ||||||||
Steel | 8,663 | 11,073 | 12,634 | Short tons | Cash flow |
Units Hedged | |||||||||||
Currency | 2016 | 2015 | 2014 | Type | |||||||
Canadian Dollar | 26,130,000 | 587,556 | 7,984,824 | Cash flow | |||||||
European Euro | 11,261,848 | 231,810 | — | Cash flow | |||||||
British Pound | 4,191,763 | 113,115 | — | Cash flow | |||||||
Mexican Peso | 148,200,000 | 28,504,800 | 52,674,383 | Cash flow | |||||||
Thailand Baht | 23,231,639 | — | — | Cash flow | |||||||
Singapore Dollar | 4,375,000 | — | — | Cash flow |
Units Hedged | |||||||||||||
Commodity | 2016 | 2015 | 2014 | Unit | Type | ||||||||
Aluminum | 28 | — | — | MT | Cash flow | ||||||||
Steel | 340 | — | — | Short tons | Cash flow |
Units Hedged | |||||||||||||
Currency | 2016 | 2015 | 2014 | Recognized Location | Purpose | ||||||||
Canadian Dollar | — | 1,117,850 | 2,516 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
European Euro | 16,000,000 | — | 2,172,068 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
British Pound | 8,192,692 | — | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Mexican Peso | — | — | 3,151,000 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Swiss Franc | 3,150,000 | — | — | Other expense (income) — net | Accounts payable and receivable settlement |
ASSET DERIVATIVES | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2016 | 2015 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Prepaids and other current assets | $ | 0.6 | $ | — | |||||
Commodity contracts | Prepaids and other current assets | 0.9 | — | |||||||
Commodity contracts | Other non-current assets | 0.2 | — | |||||||
Total derivatives designated as hedging instruments | $ | 1.7 | $ | — | ||||||
Total asset derivatives | $ | 1.7 | $ | — |
LIABILITY DERIVATIVES | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2016 | 2015 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.8 | $ | 0.1 | |||||
Commodity contracts | Accrued expenses and other liabilities | 0.1 | 2.4 | |||||||
Commodity contracts | Other long-term liabilities | — | 0.3 | |||||||
Total derivatives designated as hedging instruments | $ | 0.9 | $ | 2.8 | ||||||
Derivatives NOT designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.2 | $ | — | |||||
Commodity contracts | Accrued expenses and other liabilities | — | 0.7 | |||||||
Commodity contracts | Other long-term liabilities | — | 0.1 | |||||||
Total derivatives NOT designated as hedging instruments | $ | 0.2 | $ | 0.8 | ||||||
Total liability derivatives | $ | 1.1 | $ | 3.6 |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Foreign currency exchange contracts | $ | (0.1 | ) | $ | 0.3 | $ | (0.1 | ) | Cost of sales | $ | — | $ | (1.4 | ) | $ | (0.9 | ) | |||||||||
Commodity contracts | 2.7 | (1.1 | ) | (0.5 | ) | Cost of sales | (1.5 | ) | (3.4 | ) | (0.3 | ) | ||||||||||||||
Total | $ | 2.6 | $ | (0.8 | ) | $ | (0.6 | ) | $ | (1.5 | ) | $ | (4.8 | ) | $ | (1.2 | ) |
Derivatives relationships (in millions) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
2016 | 2015 | 2014 | ||||||||||||
Commodity contracts | $ | — | $ | 0.1 | $ | 0.1 | Cost of sales | |||||||
Total | $ | — | $ | 0.1 | $ | 0.1 |
Derivatives NOT designated as hedging instruments (in millions) | Amount of gain (loss) recognized in income on derivative | Location of gain (loss) recognized in income on derivative | ||||||||||||
2016 | 2015 | 2014 | ||||||||||||
Foreign currency exchange contracts | $ | (0.2 | ) | $ | 0.1 | $ | — | Other expense (income) — net | ||||||
Commodity contracts — short-term | 0.8 | (0.7 | ) | — | Other expense (income) — net | |||||||||
Commodity contracts — long-term | — | (0.1 | ) | — | Other expense (income) — net | |||||||||
Total | $ | 0.6 | $ | (0.7 | ) | $ | — |
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(in millions) | 2016 | 2015 | ||||||
Inventories — gross: | ||||||||
Raw materials | $ | 68.2 | $ | 70.7 | ||||
Work-in-process | 18.3 | 18.7 | ||||||
Finished goods | 85.1 | 83.4 | ||||||
Total inventories — gross | 171.6 | 172.8 | ||||||
Excess and obsolete inventory reserve | (22.5 | ) | (23.5 | ) | ||||
Net inventories at FIFO cost | 149.1 | 149.3 | ||||||
Excess of FIFO costs over LIFO value | (3.5 | ) | (3.4 | ) | ||||
Inventories — net | $ | 145.6 | $ | 145.9 |
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(in millions) | 2016 | 2015 | ||||||
Land | $ | 7.3 | $ | 7.3 | ||||
Building and improvements | 91.3 | 94.3 | ||||||
Machinery, equipment and tooling | 215.1 | 216.0 | ||||||
Furniture and fixtures | 5.8 | 6.2 | ||||||
Computer hardware and software | 52.9 | 51.2 | ||||||
Construction in progress | 11.2 | 9.8 | ||||||
Total cost | 383.6 | 384.8 | ||||||
Less accumulated depreciation | (274.5 | ) | (268.4 | ) | ||||
Property, plant and equipment — net | $ | 109.1 | $ | 116.4 |
|
(in millions) | Americas | EMEA | APAC | Total | ||||||||||||
Gross balance as of December 31, 2014 | $ | 1,172.7 | $ | 208.4 | $ | 7.4 | $ | 1,388.5 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2014 | $ | 860.5 | $ | 4.9 | $ | 7.4 | $ | 872.8 | ||||||||
Foreign currency impact | — | (0.1 | ) | (0.4 | ) | (0.5 | ) | |||||||||
Impact of acquisitions and divestitures | (27.9 | ) | — | 1.4 | (26.5 | ) | ||||||||||
Gross balance as of December 31, 2015 | $ | 1,144.8 | $ | 208.3 | $ | 8.4 | $ | 1,361.5 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2015 | $ | 832.6 | $ | 4.8 | $ | 8.4 | $ | 845.8 | ||||||||
Foreign currency impact | — | (0.1 | ) | (0.4 | ) | (0.5 | ) | |||||||||
Gross balance as of December 31, 2016 | $ | 1,144.8 | $ | 208.2 | $ | 8.0 | $ | 1,361.0 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2016 | $ | 832.6 | $ | 4.7 | $ | 8.0 | $ | 845.3 |
2016 | 2015 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 172.4 | $ | — | $ | 172.4 | $ | 175.1 | $ | — | $ | 175.1 | ||||||||||||
Customer relationships | 415.2 | (171.4 | ) | 243.8 | 415.2 | (150.4 | ) | 264.8 | ||||||||||||||||
Patents | 1.6 | (1.6 | ) | — | 1.7 | (1.6 | ) | 0.1 | ||||||||||||||||
Other intangibles | 140.7 | (72.5 | ) | 68.2 | 143.2 | (63.6 | ) | 79.6 | ||||||||||||||||
Total | $ | 729.9 | $ | (245.5 | ) | $ | 484.4 | $ | 735.2 | $ | (215.6 | ) | $ | 519.6 |
(in millions) | ||||
Year ending December 31: | ||||
2017 | $ | 31.2 | ||
2018 | 31.2 | |||
2019 | 30.9 | |||
2020 | 30.7 | |||
2021 | 30.7 | |||
Thereafter | 157.3 | |||
$ | 312.0 |
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(in millions) | 2016 | 2015 | ||||||
Accounts payable: | ||||||||
Trade accounts payable | $ | 108.4 | $ | 121.7 | ||||
Total accounts payable | $ | 108.4 | $ | 121.7 | ||||
Accrued expenses and other liabilities: | ||||||||
Interest payable | $ | 15.7 | $ | — | ||||
Income taxes payable | 2.5 | 7.3 | ||||||
Employee related expenses | 29.8 | 24.5 | ||||||
Restructuring expenses | 3.3 | 16.8 | ||||||
Profit sharing and incentives | 14.2 | 3.9 | ||||||
Accrued rebates | 56.0 | 49.9 | ||||||
Deferred revenue - current | 4.4 | 3.8 | ||||||
Dividend payable to MTW | — | 10.2 | ||||||
Customer advances | 7.4 | 2.9 | ||||||
Product liability | 2.3 | 2.6 | ||||||
Miscellaneous accrued expenses | 38.9 | 43.0 | ||||||
Total accrued expenses and other liabilities | $ | 174.5 | $ | 164.9 |
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Fiscal Quarter Ending | Consolidated Total Leverage Ratio Level (less than) | Actual Consolidated Total Leverage Ratio | Consolidated Interest Coverage Ratio Level (greater than) | Actual Consolidated Interest Coverage Ratio | ||||
March 31, 2016 | 6.25:1.00 | 5.49:1.00 | 2.00:1.00 | 5.91:1.00 | ||||
June 30, 2016 | 6.25:1.00 | 5.52:1.00 | 2.00:1.00 | 3.25:1.00 | ||||
September 30, 2016 | 6.00:1.00 | 5.29:1.00 | 2.25:1.00 | 3.17:1.00 | ||||
December 31, 2016 | 5.75:1.00 | 5.18:1.00 | 2.25:1.00 | 3.13:1.00 |
Year | Percentage | ||
2019 | 107.1 | % | |
2020 | 104.8 | % | |
2021 | 102.4 | % | |
2022 and thereafter | 100.0 | % |
(in millions) | 2016 | 2015 | ||||||
Revolving credit facility | $ | 63.5 | $ | — | ||||
Term Loan B | 825.0 | — | ||||||
Senior Notes due 2024 | 425.0 | — | ||||||
Other | 3.3 | 2.7 | ||||||
Total debt and capital leases, including current portion | 1,316.8 | 2.7 | ||||||
Less current portion of capital leases | (1.6 | ) | (0.4 | ) | ||||
Less unamortized debt issuance costs | (36.5 | ) | — | |||||
Total long-term debt and capital leases | $ | 1,278.7 | $ | 2.3 |
(in millions) | |||
Year ending December 31: | |||
2017 | $ | — | |
2018 | — | ||
2019 | — | ||
2020 | — | ||
2021 | 63.5 | ||
Thereafter | 1,250.0 | ||
$ | 1,313.5 |
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(in millions) | 2016 | 2015 | 2014 | |||||||||
Domestic | $ | 30.5 | $ | 121.3 | $ | 121.8 | ||||||
Foreign | 74.3 | 75.1 | 63.9 | |||||||||
Total | $ | 104.8 | $ | 196.4 | $ | 185.7 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Current: | ||||||||||||
Federal and state | $ | 15.7 | $ | 51.1 | $ | 28.3 | ||||||
Foreign | 19.5 | 18.2 | 15.1 | |||||||||
Total current expense | 35.2 | 69.3 | 43.4 | |||||||||
Deferred: | ||||||||||||
Federal and state | (15.5 | ) | (27.9 | ) | (12.0 | ) | ||||||
Foreign | 5.6 | (2.1 | ) | (5.5 | ) | |||||||
Total deferred expense | (9.9 | ) | (30.0 | ) | (17.5 | ) | ||||||
Income taxes | $ | 25.3 | $ | 39.3 | $ | 25.9 |
2016 | 2015 | 2014 | |||||||
Federal income tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income provision | 1.5 | 1.4 | 1.4 | ||||||
Manufacturing and research incentives | (1.9 | ) | (1.7 | ) | (1.7 | ) | |||
Taxes on foreign income which differ from the U.S. statutory rate | (8.1 | ) | (3.9 | ) | (2.4 | ) | |||
Adjustments for unrecognized tax benefits | (1.5 | ) | 0.1 | 4.3 | |||||
Adjustments for valuation allowances | 2.5 | (13.8 | ) | 21.5 | |||||
Capital loss generation | — | — | (41.4 | ) | |||||
Business acquisitions and divestitures | — | 4.1 | — | ||||||
Out of period adjustments | (2.8 | ) | — | — | |||||
Other items | (0.6 | ) | (1.2 | ) | (2.8 | ) | |||
Effective tax rate | 24.1 | % | 20.0 | % | 13.9 | % |
(in millions) | 2016 | 2015 | ||||||
Non-current deferred tax assets (liabilities): | ||||||||
Inventories | $ | 7.2 | $ | 7.6 | ||||
Accounts receivable | 1.7 | 1.2 | ||||||
Property, plant and equipment | (2.7 | ) | (2.8 | ) | ||||
Intangible assets | (190.8 | ) | (218.9 | ) | ||||
Deferred employee benefits | 19.2 | 15.7 | ||||||
Product warranty reserves | 13.3 | 14.4 | ||||||
Product liability reserves | 0.9 | 1.0 | ||||||
Loss carryforwards | 43.8 | 84.9 | ||||||
Deferred revenue | 1.3 | 1.1 | ||||||
Other | 35.4 | 16.9 | ||||||
Non-current deferred tax liabilities | (70.7 | ) | (78.9 | ) | ||||
Less valuation allowance | (59.9 | ) | (80.1 | ) | ||||
Net non-current deferred tax liabilities | $ | (130.6 | ) | $ | (159.0 | ) |
(in millions) | 2016 | 2015 | ||||||
Income taxes receivable, included in prepaids and other current assets | $ | 2.9 | $ | 2.7 | ||||
Deferred tax asset, included in other non-current assets | $ | 7.2 | $ | 8.9 | ||||
Income taxes payable, included in accrued expenses and other liabilities | $ | (2.5 | ) | $ | (7.3 | ) | ||
Deferred income tax liability | $ | (137.8 | ) | $ | (167.9 | ) |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Balance at beginning of year | $ | 16.6 | $ | 16.6 | $ | 7.8 | ||||||
Additions based on tax positions related to the current year | 1.8 | 0.2 | 14.1 | |||||||||
Reductions based on settlements with taxing authorities | — | — | (2.8 | ) | ||||||||
Reductions for equity adjustment | (4.3 | ) | — | — | ||||||||
Reductions for lapse of statute | (1.6 | ) | (0.2 | ) | (2.5 | ) | ||||||
Balance at end of year | $ | 12.5 | $ | 16.6 | $ | 16.6 |
|
(in millions) | 2016 | 2015 | 2014 | |||||||||
Gain on sale of Kysor Panel Systems (1) | $ | — | $ | (9.9 | ) | $ | — | |||||
Gain on sale of investment property | — | (5.4 | ) | — | ||||||||
Gain on acquisition of Thailand joint venture (2) | — | (4.9 | ) | — | ||||||||
Amortization of deferred financing fees | 4.8 | — | — | |||||||||
Other (3) | 4.3 | (1.9 | ) | 2.1 | ||||||||
Other expense (income) — net | $ | 9.1 | $ | (22.1 | ) | $ | 2.1 | |||||
(1) See Note 4, "Divestitures" for further discussion on the sale of Kysor Panel Systems. | ||||||||||||
(2) See Note 3, "Acquisitions" for further discussion on the acquisition of the Thailand joint venture. | ||||||||||||
(3) For the year ended December 31, 2014, $1.1 million of other expense relates to a pension obligation settled by the Company on a previously disposed entity as described in Note 4, "Divestitures." Excluding this item, other expense (income) — net consists primarily of foreign currency gains and losses. |
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(in millions) | 2016 | 2015 | ||||||
Foreign currency translation | $ | (9.8 | ) | $ | (7.9 | ) | ||
Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9 | 0.8 | (1.8 | ) | |||||
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3 | (34.4 | ) | (34.8 | ) | ||||
$ | (43.4 | ) | $ | (44.5 | ) |
(in millions) | Foreign Currency Translation | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2013 | $ | 34.2 | $ | (0.4 | ) | $ | (32.6 | ) | $ | 1.2 | ||||||
Other comprehensive loss before reclassifications | (16.9 | ) | (1.4 | ) | (4.8 | ) | (23.1 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 0.8 | 0.4 | 1.2 | ||||||||||||
Net current period other comprehensive loss | (16.9 | ) | (0.6 | ) | (4.4 | ) | (21.9 | ) | ||||||||
Balance at December 31, 2014 | 17.3 | (1.0 | ) | (37.0 | ) | (20.7 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (25.2 | ) | (3.8 | ) | 1.1 | (27.9 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | 3.0 | 1.1 | 4.1 | ||||||||||||
Net current period other comprehensive (loss) income | (25.2 | ) | (0.8 | ) | 2.2 | (23.8 | ) | |||||||||
Balance at December 31, 2015 | (7.9 | ) | (1.8 | ) | (34.8 | ) | (44.5 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (1.9 | ) | 1.7 | (1.1 | ) | (1.3 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | 0.9 | 1.5 | 2.4 | ||||||||||||
Net current period other comprehensive (loss) income | (1.9 | ) | 2.6 | 0.4 | 1.1 | |||||||||||
Balance at December 31, 2016 | $ | (9.8 | ) | $ | 0.8 | $ | (34.4 | ) | $ | (43.4 | ) |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | ||||
Gains and losses on cash flow hedges: | ||||||
Foreign currency exchange contracts | $ | — | Cost of sales | |||
Commodity contracts | (1.5 | ) | Cost of sales | |||
(1.5 | ) | Total before tax | ||||
0.6 | Tax expense | |||||
$ | (0.9 | ) | Net of tax | |||
Amortization of pension and postretirement items: | ||||||
Amortization of prior service cost | $ | — | (a) | |||
Actuarial losses | (2.5 | ) | (a) | |||
(2.5 | ) | Total before tax | ||||
1.0 | Tax benefit | |||||
$ | (1.5 | ) | Net of tax | |||
Total reclassifications for the period | $ | (2.4 | ) | Net of tax | ||
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | ||||
Gains and losses on cash flow hedges: | ||||||
Foreign currency exchange contracts | $ | (1.4 | ) | Cost of sales | ||
Commodity contracts | (3.4 | ) | Cost of sales | |||
(4.8 | ) | Total before tax | ||||
1.8 | Tax expense | |||||
$ | (3.0 | ) | Net of tax | |||
Amortization of pension and postretirement items: | ||||||
Amortization of prior service cost | $ | — | (a) | |||
Actuarial losses | (1.1 | ) | (a) | |||
(1.1 | ) | Total before tax | ||||
— | Tax benefit | |||||
$ | (1.1 | ) | Net of tax | |||
Total reclassifications for the period | $ | (4.1 | ) | Net of tax | ||
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). |
|
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||
Options outstanding as of January 1, 2016 | 1.4 | $ | 17.70 | ||||||||
Granted | 0.3 | 13.56 | |||||||||
Exercised | (0.1 | ) | 8.71 | ||||||||
Cancelled | (0.2 | ) | 19.41 | ||||||||
Options outstanding as of December 31, 2016 | 1.4 | $ | 13.69 | $ | 9.3 | ||||||
Options exercisable as of December 31, 2016 | 0.8 | $ | 13.16 | $ | 6.2 |
Range of Exercise Price | Outstanding Options | Weighted Average Remaining Contractual Life Years) | Weighted Average Exercise Price | Exercisable Options | Weighted Average Exercise Price | |||||||||||
$0.00 - $5.00 | 0.2 | 2.2 | $ | 3.51 | 0.2 | $ | 3.51 | |||||||||
$5.01 - $10.00 | 0.2 | 3.1 | 9.04 | 0.2 | 9.04 | |||||||||||
$10.01 - $15.00 | 0.6 | 8.3 | 13.36 | 0.1 | 13.36 | |||||||||||
$15.01 - $20.00 | 0.2 | 6.2 | 16.53 | 0.1 | 16.08 | |||||||||||
$20.01 - $25.00 | 0.1 | 3.5 | 23.32 | 0.1 | 23.37 | |||||||||||
$25.01+ | 0.1 | 1.1 | 31.27 | 0.1 | 31.27 | |||||||||||
1.4 | 5.8 | $ | 13.69 | 0.8 | $ | 13.16 |
2016 | 2015 | 2014 | |||||||
Expected life (years) | 6.0 | 6.0 | 6.0 | ||||||
Risk-free interest rate | 1.6 | % | 1.8 | % | 1.9 | % | |||
Expected volatility | 39.0 | % | 56.0 | % | 55.0 | % | |||
Expected dividend yield | — | % | 0.3 | % | 0.4 | % |
Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested as of January 1, 2016 | 0.2 | $ | 24.50 | ||||
Granted | 0.7 | 15.20 | |||||
Vested | — | — | |||||
Forfeited | — | — | |||||
Unvested as of December 31, 2016 | 0.9 | $ | 17.20 |
|
|
(in millions) | 2016 | 2015 | ||||||
Balance at the beginning of the period | $ | 40.0 | $ | 42.0 | ||||
Accruals for warranties issued | 22.1 | 24.2 | ||||||
Settlements made (in cash or in kind) | (25.1 | ) | (25.2 | ) | ||||
Currency translation impact | (0.7 | ) | (1.0 | ) | ||||
Balance at the end of the period | $ | 36.3 | $ | 40.0 |
|
(in millions) | 2016 | 2015 | ||||||
Balance at January 1 | $ | 16.8 | $ | 15.6 | ||||
Restructuring charges | 2.5 | 4.6 | ||||||
Use of reserve | (4.9 | ) | (3.4 | ) | ||||
Balance at December 31 | $ | 14.4 | $ | 16.8 |
|
Pension Plans | Postretirement Health and Other | |||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Service cost - benefits earned during the year | $ | 0.2 | $ | 0.4 | $ | 0.5 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost of projected benefit obligation | 8.3 | 6.5 | 8.1 | 0.4 | 0.1 | 0.2 | ||||||||||||||||||
Expected return on assets | (6.2 | ) | (5.4 | ) | (7.1 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost | — | — | — | — | — | (0.3 | ) | |||||||||||||||||
Amortization of actuarial net (gain) loss | 2.5 | 1.2 | 0.9 | — | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Curtailment gain recognized | — | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 4.8 | $ | 2.7 | $ | 2.4 | $ | 0.4 | $ | — | $ | (0.2 | ) | |||||||||||
Weighted average assumptions: | ||||||||||||||||||||||||
Discount rate | 3.9 | % | 3.5 | % | 4.4 | % | 3.9 | % | 3.7 | % | 4.5 | % | ||||||||||||
Expected return on plan assets | 3.7 | % | 3.5 | % | 4.5 | % | N/A | N/A | N/A | |||||||||||||||
Rate of compensation increase | 4.0 | % | 4.0 | % | 4.0 | % | 1.5 | % | 1.5 | % | 1.5 | % |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Change in Benefit Obligation | ||||||||||||||||
Benefit obligation, beginning of year | $ | 177.2 | $ | 195.0 | $ | 3.2 | $ | 2.8 | ||||||||
Service cost | 0.2 | 0.4 | — | — | ||||||||||||
Interest cost | 8.3 | 6.5 | 0.4 | 0.1 | ||||||||||||
Participant contributions | — | — | 0.4 | 0.3 | ||||||||||||
Plan combinations | 55.6 | — | 6.8 | — | ||||||||||||
Actuarial loss (gain) | 4.1 | (5.5 | ) | — | 0.7 | |||||||||||
Currency translation adjustment | (29.3 | ) | (8.8 | ) | — | (0.2 | ) | |||||||||
Benefits paid | (12.2 | ) | (10.4 | ) | (1.8 | ) | (0.5 | ) | ||||||||
Benefit obligation, end of year | $ | 203.9 | $ | 177.2 | $ | 9.0 | $ | 3.2 | ||||||||
Change in Plan Assets | ||||||||||||||||
Fair value of plan assets, beginning of year | 147.9 | 162.1 | — | — | ||||||||||||
Actual return on plan assets | 14.1 | 0.6 | — | — | ||||||||||||
Employer contributions | 6.1 | 3.1 | 1.4 | 0.2 | ||||||||||||
Participant contributions | — | — | 0.4 | 0.3 | ||||||||||||
Plan combinations | 34.1 | — | — | — | ||||||||||||
Currency translation adjustment | (26.2 | ) | (7.5 | ) | — | — | ||||||||||
Benefits paid | (12.2 | ) | (10.4 | ) | (1.8 | ) | (0.5 | ) | ||||||||
Fair value of plan assets, end of year | 163.8 | 147.9 | — | — | ||||||||||||
Funded status | $ | (40.1 | ) | $ | (29.3 | ) | $ | (9.0 | ) | $ | (3.2 | ) | ||||
Amounts Recognized in the Consolidated Balance Sheet at December 31 | ||||||||||||||||
Pension obligation (1) | $ | (40.1 | ) | $ | (29.3 | ) | $ | — | $ | — | ||||||
Postretirement health and other benefit obligations (2) | — | — | (9.0 | ) | (3.2 | ) | ||||||||||
Net amount recognized | $ | (40.1 | ) | $ | (29.3 | ) | $ | (9.0 | ) | $ | (3.2 | ) | ||||
Weighted-Average Assumptions | ||||||||||||||||
Discount rate | 3.1 | % | 3.7 | % | 3.5 | % | 3.9 | % | ||||||||
Rate of compensation increase | N/A | 4.0 | % | 1.5 | % | 1.5 | % | |||||||||
(1) As of December 31, 2016, the short-term portion of the pension obligation and postretirement health and other benefit obligation of $0.7 million and $1.0 million, respectively, are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets. |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net actuarial gain (loss) | $ | (40.5 | ) | $ | (35.1 | ) | $ | (0.5 | ) | $ | — | |||||
Total amount recognized | $ | (40.5 | ) | $ | (35.1 | ) | $ | (0.5 | ) | $ | — |
Change in assumption: | Estimated increase (decrease) in 2017 pension cost | Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2016 | Estimated increase (decrease) in 2017 other postretirement benefit costs | Estimated increase (decrease) in other postretirement benefit obligation for the year ended December 31, 2016 | ||||||||||||
0.5% increase in discount rate | $ | (0.4 | ) | $ | (13.4 | ) | $ | — | $ | (0.3 | ) | |||||
0.5% decrease in discount rate | 0.4 | 14.5 | — | 0.3 | ||||||||||||
0.5% increase in long-term return on assets | (0.8 | ) | N/A | N/A | N/A | |||||||||||
0.5% decrease in long-term return on assets | 0.8 | N/A | N/A | N/A | ||||||||||||
1% increase in medical trend rates | N/A | N/A | 0.1 | 0.6 | ||||||||||||
1% decrease in medical trend rates | N/A | N/A | (0.1 | ) | (0.5 | ) |
2016 | 2015 | |||||
Equity Securities | 20.8 | % | 10.2 | % | ||
Debt Securities | 34.5 | % | 28.9 | % | ||
Other | 44.7 | % | 60.9 | % | ||
100.0 | % | 100.0 | % |
Target Allocations | Weighted Average Asset Allocations | |||||
Equity Securities | 20.3 | % | 20.8 | % | ||
Debt Securities | 33.8 | % | 34.5 | % | ||
Other | 45.9 | % | 44.7 | % |
December 31, 2016 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 1.0 | $ | — | $ | — | $ | 1.0 | ||||||||
Insurance group annuity contracts | — | — | 72.2 | 72.2 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 51.6 | — | 51.6 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 34.1 | — | 34.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 4.9 | — | 4.9 | ||||||||||||
Total | $ | 1.0 | $ | 90.6 | $ | 72.2 | $ | 163.8 |
December 31, 2015 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||
Insurance group annuity contracts | — | — | 89.9 | 89.9 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 36.7 | — | 36.7 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 15.1 | — | 15.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 5.9 | — | 5.9 | ||||||||||||
Total | $ | 0.3 | $ | 57.7 | $ | 89.9 | $ | 147.9 |
Insurance Contracts Year Ended December 31, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Beginning Balance | $ | 89.9 | $ | 98.9 | ||||
Actual return on assets | 2.5 | 0.9 | ||||||
Benefit payments | (4.8 | ) | (5.4 | ) | ||||
Foreign currency impact | (15.4 | ) | (4.5 | ) | ||||
Ending Balance | $ | 72.2 | $ | 89.9 |
(in millions) | Pension Plans | Postretirement Health and Other | ||||||
2017 | $ | 11.7 | $ | 1.0 | ||||
2018 | 12.0 | 1.1 | ||||||
2019 | 12.4 | 1.1 | ||||||
2020 | 12.9 | 1.0 | ||||||
2021 | 13.2 | 0.9 | ||||||
2022-2026 | 71.9 | 3.6 |
Pension Plans | ||||||||
(in millions) | 2016 | 2015 | ||||||
Projected benefit obligation | $ | 203.9 | $ | 177.2 | ||||
Accumulated benefit obligation | 203.9 | 176.3 | ||||||
Fair value of plan assets | 163.8 | 147.9 |
|
(in millions) | |||
Year ending December 31: | |||
2017 | $ | 11.2 | |
2018 | 9.2 | ||
2019 | 7.6 | ||
2020 | 5.6 | ||
2021 | 3.6 | ||
Thereafter | 0.2 | ||
$ | 37.4 |
|
(in millions) | 2016 | 2015 | 2014 | |||||||||
Net sales: | ||||||||||||
Americas | $ | 1,186.6 | $ | 1,323.7 | $ | 1,301.9 | ||||||
EMEA | 287.6 | 281.6 | 315.1 | |||||||||
APAC | 190.9 | 191.1 | 198.2 | |||||||||
Elimination of intersegment sales | (208.5 | ) | (226.3 | ) | (233.9 | ) | ||||||
Total net sales | $ | 1,456.6 | $ | 1,570.1 | $ | 1,581.3 | ||||||
Segment Operating EBITA: | ||||||||||||
Americas | $ | 219.1 | $ | 189.9 | $ | 197.4 | ||||||
EMEA | 41.3 | 23.1 | 20.7 | |||||||||
APAC | 21.8 | 22.5 | 21.6 | |||||||||
Total segment Operating EBITA | 282.2 | 235.5 | 239.7 | |||||||||
Corporate and unallocated | (51.8 | ) | (44.2 | ) | (35.4 | ) | ||||||
Amortization expense | (31.2 | ) | (31.4 | ) | (31.8 | ) | ||||||
Earnings from operations | 199.2 | 159.9 | 172.5 | |||||||||
Interest expense | (85.2 | ) | (1.4 | ) | (1.3 | ) | ||||||
Interest (expense) income on notes with MTW — net | (0.1 | ) | 15.8 | 16.6 | ||||||||
Other (expense) income — net | (9.1 | ) | 22.1 | (2.1 | ) | |||||||
Earnings before income taxes | $ | 104.8 | $ | 196.4 | $ | 185.7 | ||||||
Operating EBITA % by segment (1) : | ||||||||||||
Americas | 18.5 | % | 14.3 | % | 15.2 | % | ||||||
EMEA | 14.4 | % | 8.2 | % | 6.6 | % | ||||||
APAC | 11.4 | % | 11.8 | % | 10.9 | % | ||||||
(1) Operating EBITA % in the section above is calculated by dividing the dollar amount of Operating EBITA by net sales for each respective segment. | ||||||||||||
Capital expenditures: | ||||||||||||
Americas | $ | 12.4 | $ | 8.4 | $ | 12.4 | ||||||
EMEA | 0.9 | 1.5 | 2.9 | |||||||||
APAC | 1.8 | 1.4 | 0.8 | |||||||||
Corporate | 0.9 | 1.9 | 9.2 | |||||||||
Total capital expenditures | $ | 16.0 | $ | 13.2 | $ | 25.3 | ||||||
Depreciation: | ||||||||||||
Americas | $ | 12.1 | $ | 14.3 | $ | 14.1 | ||||||
EMEA | 2.5 | 2.6 | 3.0 | |||||||||
APAC | 2.0 | 2.1 | 2.3 | |||||||||
Corporate | 0.7 | 0.6 | 1.8 | |||||||||
Total depreciation | $ | 17.3 | $ | 19.6 | $ | 21.2 | ||||||
Total assets by segment: | ||||||||||||
Americas | $ | 1,463.7 | $ | 1,495.2 | ||||||||
EMEA | 102.6 | 148.5 | ||||||||||
APAC | 110.8 | 96.5 | ||||||||||
Corporate | 92.0 | 13.8 | ||||||||||
Total assets | $ | 1,769.1 | $ | 1,754.0 |
(in millions) | 2016 | 2015 | 2014 | ||||||||||
Commercial foodservice whole goods | $ | 1,191.0 | $ | 1,277.2 | $ | 1,293.6 | |||||||
Aftermarket parts and support | 265.6 | 292.9 | 287.7 | ||||||||||
Total net sales | $ | 1,456.6 | $ | 1,570.1 | $ | 1,581.3 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Net sales by geographic area: | ||||||||||||
United States | $ | 945.7 | $ | 1,066.7 | $ | 996.4 | ||||||
Other Americas | 104.3 | 106.6 | 127.4 | |||||||||
EMEA | 242.0 | 237.2 | 280.3 | |||||||||
APAC | 164.6 | 159.6 | 177.2 | |||||||||
Total net sales by geographic area | $ | 1,456.6 | $ | 1,570.1 | $ | 1,581.3 | ||||||
Long-lived assets by geographic area (1): | 2016 | 2015 | ||||||||||
United States | $ | 1,313.3 | $ | 1,339.2 | ||||||||
Other Americas | 40.1 | 40.3 | ||||||||||
EMEA | 69.7 | 78.2 | ||||||||||
APAC | 30.6 | 34.8 | ||||||||||
Total long-lived assets by geographic area | $ | 1,453.7 | $ | 1,492.5 | ||||||||
(1) Excludes deferred tax assets of $7.2 million and $8.9 million recorded in "Other non-current assets" in the accompanying consolidated balance sheets as of December 31, 2016 and 2015, respectively. |
|
2016 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 325.5 | $ | 368.4 | $ | 384.0 | $ | 378.7 | ||||||||
Gross profit | 117.6 | 134.7 | 142.0 | 138.5 | ||||||||||||
Net earnings | 18.1 | 15.1 | 24.9 | 21.4 | ||||||||||||
Per share data | ||||||||||||||||
Earnings per common share — Basic | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 | ||||||||
Earnings per common share — Diluted | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 |
2015 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 345.4 | $ | 407.7 | $ | 425.3 | $ | 391.7 | ||||||||
Gross profit | 106.6 | 126.9 | 135.3 | 132.9 | ||||||||||||
Net earnings | 14.0 | 36.9 | 41.1 | 65.1 | ||||||||||||
Per share data (1) | ||||||||||||||||
Earnings per common share — Basic | $ | 0.10 | $ | 0.27 | $ | 0.30 | $ | 0.48 | ||||||||
Earnings per common share — Diluted | $ | 0.10 | $ | 0.27 | $ | 0.30 | $ | 0.48 |
|
|
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,070.0 | $ | 782.2 | $ | (395.6 | ) | $ | 1,456.6 | |||||||||
Cost of sales | 3.4 | 775.9 | 540.1 | (395.6 | ) | 923.8 | ||||||||||||||
Gross profit | (3.4 | ) | 294.1 | 242.1 | — | 532.8 | ||||||||||||||
Selling, general and administrative expenses | 35.5 | 152.9 | 101.7 | — | 290.1 | |||||||||||||||
Amortization expense | — | 28.4 | 2.8 | — | 31.2 | |||||||||||||||
Separation expense | 6.3 | — | 0.2 | — | 6.5 | |||||||||||||||
Restructuring expense | — | 1.6 | 0.9 | — | 2.5 | |||||||||||||||
Asset impairment expense | — | 2.9 | 0.4 | — | 3.3 | |||||||||||||||
Earnings (loss) from operations | (45.2 | ) | 108.3 | 136.1 | — | 199.2 | ||||||||||||||
Interest expense | 82.2 | 1.2 | 1.8 | — | 85.2 | |||||||||||||||
Interest expense on notes with MTW — net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Other (income) expense — net | (5.6 | ) | 19.6 | (4.9 | ) | — | 9.1 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 200.5 | 114.0 | — | (314.5 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 78.7 | 201.5 | 139.1 | (314.5 | ) | 104.8 | ||||||||||||||
Income taxes | (0.8 | ) | 1.0 | 25.1 | — | 25.3 | ||||||||||||||
Net earnings (loss) | $ | 79.5 | $ | 200.5 | $ | 114.0 | $ | (314.5 | ) | $ | 79.5 | |||||||||
Total other comprehensive income (loss), net of tax | 1.1 | 3.0 | 7.3 | (10.3 | ) | 1.1 | ||||||||||||||
Comprehensive income (loss) | $ | 80.6 | $ | 203.5 | $ | 121.3 | $ | (324.8 | ) | $ | 80.6 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,109.8 | $ | 809.9 | $ | (349.6 | ) | $ | 1,570.1 | |||||||||
Cost of sales | 0.1 | 803.6 | 614.3 | (349.6 | ) | 1,068.4 | ||||||||||||||
Gross profit | (0.1 | ) | 306.2 | 195.6 | — | 501.7 | ||||||||||||||
Selling, general and administrative expenses | 32.2 | 144.6 | 114.8 | — | 291.6 | |||||||||||||||
Amortization expense | — | 28.5 | 2.9 | — | 31.4 | |||||||||||||||
Separation expense | 4.4 | (0.5 | ) | 1.3 | — | 5.2 | ||||||||||||||
Restructuring expense | — | 1.9 | 2.7 | — | 4.6 | |||||||||||||||
Asset impairment expense | — | 9.0 | — | — | 9.0 | |||||||||||||||
Earnings from operations | (36.7 | ) | 122.7 | 73.9 | — | 159.9 | ||||||||||||||
Interest expense | — | 1.2 | 0.2 | — | 1.4 | |||||||||||||||
Interest income on notes with MTW — net | — | (14.9 | ) | (0.9 | ) | — | (15.8 | ) | ||||||||||||
Other income — net | (78.6 | ) | 77.8 | (21.3 | ) | — | (22.1 | ) | ||||||||||||
Equity in earnings (loss) of subsidiaries | 123.2 | 77.9 | — | (201.1 | ) | — | ||||||||||||||
Earnings before income taxes | 165.1 | 136.5 | 95.9 | (201.1 | ) | 196.4 | ||||||||||||||
Income taxes | 8.0 | 13.3 | 18.0 | — | 39.3 | |||||||||||||||
Net earnings (loss) | $ | 157.1 | $ | 123.2 | $ | 77.9 | $ | (201.1 | ) | $ | 157.1 | |||||||||
Total other comprehensive (loss) income, net of tax | (23.8 | ) | (27.7 | ) | (26.9 | ) | 54.6 | (23.8 | ) | |||||||||||
Comprehensive income (loss) | $ | 133.3 | $ | 95.5 | $ | 51.0 | $ | (146.5 | ) | $ | 133.3 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,051.7 | $ | 836.5 | $ | (306.9 | ) | $ | 1,581.3 | |||||||||
Cost of sales | — | 750.3 | 629.9 | (306.9 | ) | 1,073.3 | ||||||||||||||
Gross profit | — | 301.4 | 206.6 | — | 508.0 | |||||||||||||||
Selling, general and administrative expenses | 29.3 | 142.0 | 128.3 | — | 299.6 | |||||||||||||||
Amortization expense | — | 28.5 | 3.3 | — | 31.8 | |||||||||||||||
Separation expense | — | 0.1 | 0.3 | — | 0.4 | |||||||||||||||
Restructuring expense | — | 2.7 | (0.1 | ) | — | 2.6 | ||||||||||||||
Asset impairment expense | — | 1.1 | — | — | 1.1 | |||||||||||||||
Earnings from operations | (29.3 | ) | 127.0 | 74.8 | — | 172.5 | ||||||||||||||
Interest expense | — | 1.2 | 0.1 | — | 1.3 | |||||||||||||||
Interest income on notes with MTW — net | — | (17.3 | ) | 0.7 | — | (16.6 | ) | |||||||||||||
Other income — net | 7.8 | (4.2 | ) | (1.5 | ) | — | 2.1 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 192.0 | 65.7 | — | (257.7 | ) | — | ||||||||||||||
Earnings before income taxes | 154.9 | 213.0 | 75.5 | (257.7 | ) | 185.7 | ||||||||||||||
Income taxes | (4.9 | ) | 21.0 | 9.8 | — | 25.9 | ||||||||||||||
Net earnings (loss) | $ | 159.8 | $ | 192.0 | $ | 65.7 | $ | (257.7 | ) | $ | 159.8 | |||||||||
Total other comprehensive (loss) income, net of tax | (21.9 | ) | (17.7 | ) | (18.1 | ) | 35.8 | (21.9 | ) | |||||||||||
Comprehensive income (loss) | $ | 137.9 | $ | 174.3 | $ | 47.6 | $ | (221.9 | ) | $ | 137.9 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 | ||||||||||
Restricted cash | — | — | 6.4 | — | 6.4 | |||||||||||||||
Accounts receivable — net | 0.5 | — | 86.1 | (4.9 | ) | 81.7 | ||||||||||||||
Inventories — net | — | 74.3 | 71.3 | — | 145.6 | |||||||||||||||
Prepaids and other current assets | 0.9 | 4.5 | 8.5 | — | 13.9 | |||||||||||||||
Current assets held for sale | — | 2.3 | 4.5 | — | 6.8 | |||||||||||||||
Total current assets | 1.8 | 83.4 | 227.9 | (4.9 | ) | 308.2 | ||||||||||||||
Property, plant and equipment — net | 1.2 | 67.9 | 40.0 | — | 109.1 | |||||||||||||||
Goodwill | — | 832.4 | 12.9 | — | 845.3 | |||||||||||||||
Other intangible assets — net | — | 423.5 | 60.9 | — | 484.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,085.8 | — | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,780.3 | — | — | (3,780.3 | ) | — | ||||||||||||||
Other non-current assets | 2.7 | 5.1 | 19.7 | (5.4 | ) | 22.1 | ||||||||||||||
Total assets | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 64.6 | $ | 48.6 | $ | (4.9 | ) | $ | 108.4 | |||||||||
Accrued expenses and other liabilities | 14.1 | 97.5 | 62.9 | — | 174.5 | |||||||||||||||
Current portion of capital leases | — | 0.5 | 1.1 | — | 1.6 | |||||||||||||||
Product warranties | — | 18.4 | 9.5 | — | 27.9 | |||||||||||||||
Current liabilities held for sale | — | — | 0.7 | — | 0.7 | |||||||||||||||
Total current liabilities | 14.2 | 181.0 | 122.8 | (4.9 | ) | 313.1 | ||||||||||||||
Long-term debt and capital leases | 1,277.0 | 1.7 | — | — | 1,278.7 | |||||||||||||||
Deferred income taxes | 120.5 | — | 17.3 | — | 137.8 | |||||||||||||||
Pension and postretirement health obligations | 47.9 | 4.9 | — | (5.4 | ) | 47.4 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,344.8 | — | 741.0 | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 524.6 | — | (524.6 | ) | — | ||||||||||||||
Other long-term liabilities | 9.4 | 25.6 | 0.6 | — | 35.6 | |||||||||||||||
Total non-current liabilities | 3,815.3 | 556.8 | 763.2 | (3,635.8 | ) | 1,499.5 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | (43.5 | ) | 3,780.3 | (524.6 | ) | (3,255.7 | ) | (43.5 | ) | |||||||||||
Total liabilities and equity | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3.5 | $ | 28.5 | $ | — | $ | 32.0 | ||||||||||
Restricted cash | — | — | 0.6 | — | 0.6 | |||||||||||||||
Accounts receivable — net | — | — | 73.4 | (9.6 | ) | 63.8 | ||||||||||||||
Intercompany interest receivable | — | — | 4.2 | (4.2 | ) | — | ||||||||||||||
Intercompany short-term note receivable | — | — | 31.0 | (31.0 | ) | — | ||||||||||||||
Inventories — net | — | 80.2 | 65.7 | — | 145.9 | |||||||||||||||
Prepaids and other current assets | 1.2 | 2.3 | 9.0 | (2.2 | ) | 10.3 | ||||||||||||||
Total current assets | 1.2 | 86.0 | 212.4 | (47.0 | ) | 252.6 | ||||||||||||||
Property, plant and equipment — net | 0.9 | 71.2 | 44.3 | — | 116.4 | |||||||||||||||
Goodwill | — | 832.4 | 13.4 | — | 845.8 | |||||||||||||||
Other intangible assets — net | — | 452.1 | 67.5 | — | 519.6 | |||||||||||||||
Intercompany long-term note receivable | — | — | 42.4 | (42.4 | ) | — | ||||||||||||||
Due from affiliates | — | 3,074.9 | — | (3,074.9 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,579.8 | — | — | (3,579.8 | ) | — | ||||||||||||||
Other non-current assets | — | 3.1 | 71.8 | (59.0 | ) | 15.9 | ||||||||||||||
Long-term assets held for sale | — | 3.7 | — | — | 3.7 | |||||||||||||||
Total assets | $ | 3,581.9 | $ | 4,523.4 | $ | 451.8 | $ | (6,803.1 | ) | $ | 1,754.0 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | — | $ | 81.8 | $ | 49.5 | $ | (9.6 | ) | $ | 121.7 | |||||||||
Accrued expenses and other liabilities | 0.1 | 100.1 | 66.9 | (2.2 | ) | 164.9 | ||||||||||||||
Current portion of capital leases | — | 0.4 | — | — | 0.4 | |||||||||||||||
Intercompany interest payable | — | 4.2 | — | (4.2 | ) | — | ||||||||||||||
Intercompany short-term note payable | — | 31.0 | — | (31.0 | ) | — | ||||||||||||||
Product warranties | — | 23.8 | 10.5 | — | 34.3 | |||||||||||||||
Total current liabilities | 0.1 | 241.3 | 126.9 | (47.0 | ) | 321.3 | ||||||||||||||
Long-term capital leases | — | 2.3 | — | — | 2.3 | |||||||||||||||
Deferred income taxes | 155.4 | — | 63.5 | (51.0 | ) | 167.9 | ||||||||||||||
Pension and postretirement health obligations | 35.0 | 6.3 | — | (8.0 | ) | 33.3 | ||||||||||||||
Intercompany long-term note payable | — | 42.4 | — | (42.4 | ) | — | ||||||||||||||
Due to affiliates | 2,176.9 | — | 898.0 | (3,074.9 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 638.6 | — | (638.6 | ) | — | ||||||||||||||
Other long-term liabilities | 5.8 | 12.7 | 2.0 | — | 20.5 | |||||||||||||||
Total non-current liabilities | 2,373.1 | 702.3 | 963.5 | (3,814.9 | ) | 224.0 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | 1,208.7 | 3,579.8 | (638.6 | ) | (2,941.2 | ) | 1,208.7 | |||||||||||||
Total liabilities and equity | $ | 3,581.9 | $ | 4,523.4 | $ | 451.8 | $ | (6,803.1 | ) | $ | 1,754.0 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used for) provided by operating activities | $ | (102.7 | ) | $ | 111.5 | $ | 113.2 | $ | — | $ | 122.0 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (1.0 | ) | (8.0 | ) | (7.0 | ) | — | (16.0 | ) | |||||||||||
Changes in restricted cash | — | — | (6.0 | ) | — | (6.0 | ) | |||||||||||||
Proceeds from dispositions | — | — | 1.6 | — | 1.6 | |||||||||||||||
Intercompany investment | — | (104.4 | ) | (79.4 | ) | 183.8 | — | |||||||||||||
Net cash provided by (used for) investing activities | (1.0 | ) | (112.4 | ) | (90.8 | ) | 183.8 | (20.4 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 1,499.5 | 0.2 | 1.4 | — | 1,501.1 | |||||||||||||||
Repayments on long-term debt and capital leases | (186.0 | ) | (0.5 | ) | (0.3 | ) | — | (186.8 | ) | |||||||||||
Debt issuance costs | (41.3 | ) | — | — | — | (41.3 | ) | |||||||||||||
Dividend paid to MTW | (1,362.0 | ) | — | — | — | (1,362.0 | ) | |||||||||||||
Net transactions with MTW | (6.1 | ) | — | — | — | (6.1 | ) | |||||||||||||
Exercises of stock options | 16.2 | — | — | — | 16.2 | |||||||||||||||
Intercompany financing | 183.8 | — | — | (183.8 | ) | — | ||||||||||||||
Net cash (used for) provided by financing activities | 104.1 | (0.3 | ) | 1.1 | (183.8 | ) | (78.9 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (0.9 | ) | — | (0.9 | ) | |||||||||||||
Net increase in cash and cash equivalents | 0.4 | (1.2 | ) | 22.6 | — | 21.8 | ||||||||||||||
Balance at beginning of period | — | 3.5 | 28.5 | — | 32.0 | |||||||||||||||
Balance at end of period | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by operating activities | $ | 376.9 | $ | (137.6 | ) | $ | (96.3 | ) | $ | — | $ | 143.0 | ||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.8 | ) | (6.5 | ) | (5.9 | ) | — | (13.2 | ) | |||||||||||
Changes in restricted cash | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||
Business acquisitions, net of cash acquired | — | — | (5.3 | ) | — | (5.3 | ) | |||||||||||||
Proceeds from sale of business | — | 78.2 | — | — | 78.2 | |||||||||||||||
Intercompany investment | (193.2 | ) | — | — | 193.2 | — | ||||||||||||||
Net cash used for investing activities | (194.0 | ) | 71.7 | (11.8 | ) | 193.2 | 59.1 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from capital leases | — | 0.5 | — | — | 0.5 | |||||||||||||||
Repayments on capital leases | — | (0.7 | ) | — | — | (0.7 | ) | |||||||||||||
Net transactions with MTW | (182.9 | ) | — | — | — | (182.9 | ) | |||||||||||||
Intercompany financing | — | 66.9 | 126.3 | (193.2 | ) | — | ||||||||||||||
Net cash used for financing activities | (182.9 | ) | 66.7 | 126.3 | (193.2 | ) | (183.1 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (3.5 | ) | — | (3.5 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | 0.8 | 14.7 | — | 15.5 | |||||||||||||||
Balance at beginning of period | — | 2.7 | 13.8 | — | 16.5 | |||||||||||||||
Balance at end of period | $ | — | $ | 3.5 | $ | 28.5 | $ | — | $ | 32.0 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by operating activities | $ | 159.1 | $ | (54.0 | ) | $ | 95.1 | $ | — | $ | 200.2 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | — | (18.3 | ) | (7.0 | ) | — | (25.3 | ) | ||||||||||||
Intercompany investment | — | — | (82.7 | ) | 82.7 | — | ||||||||||||||
Net cash used for investing activities | — | (18.3 | ) | (89.7 | ) | 82.7 | (25.3 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from capital leases | — | 3.1 | — | — | 3.1 | |||||||||||||||
Repayments on capital leases | — | (3.4 | ) | — | — | (3.4 | ) | |||||||||||||
Net transactions with MTW | (166.7 | ) | — | — | — | (166.7 | ) | |||||||||||||
Intercompany financing | 7.6 | 75.1 | — | (82.7 | ) | — | ||||||||||||||
Net cash used for financing activities | (159.1 | ) | 74.8 | — | (82.7 | ) | (167.0 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | 2.5 | 4.4 | — | 6.9 | |||||||||||||||
Balance at beginning of period | — | 0.2 | 9.4 | — | 9.6 | |||||||||||||||
Balance at end of period | $ | — | $ | 2.7 | $ | 13.8 | $ | — | $ | 16.5 |
|
(in millions) | Balance at Beginning of Year | Charge to Costs and Expenses | Utilization of Reserve | Other, Primarily Impact of Foreign Exchange Rates | Balance at end of Year | |||||||||||||||
Year End December 31, 2014 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 3.1 | $ | 4.2 | $ | (3.2 | ) | $ | (0.2 | ) | $ | 3.9 | ||||||||
Deferred tax valuation allowance | $ | 80.2 | $ | 36.3 | $ | (0.4 | ) | $ | (3.0 | ) | $ | 113.1 | ||||||||
Year End December 31, 2015 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 3.9 | $ | 2.5 | $ | (2.2 | ) | $ | (0.2 | ) | $ | 4.0 | ||||||||
Deferred tax valuation allowance | $ | 113.1 | $ | (0.5 | ) | $ | (28.2 | ) | $ | (4.3 | ) | $ | 80.1 | |||||||
Year End December 31, 2016 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 4.0 | $ | 1.7 | $ | (0.3 | ) | $ | (0.1 | ) | $ | 5.3 | ||||||||
Deferred tax valuation allowance | $ | 80.1 | $ | 2.7 | $ | (18.2 | ) | $ | (4.7 | ) | $ | 59.9 |
|
Useful lives | |
Patents | 10-20 years |
Engineering drawings | 15 years |
Customer relationships | 10-20 years |
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 15 |
Computer hardware and software | 2 - 7 |
|
Useful lives | |
Patents | 10-20 years |
Engineering drawings | 15 years |
Customer relationships | 10-20 years |
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 15 |
Computer hardware and software | 2 - 7 |
|
Fair Value as of December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Commodity contracts | — | 0.9 | — | 0.9 | ||||||||||||
Total current assets at fair value | — | 1.5 | — | 1.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total non-current assets at fair value | — | 0.2 | — | 0.2 | ||||||||||||
Total assets at fair value | $ | — | $ | 1.7 | $ | — | $ | 1.7 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.1 | — | 1.1 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
Fair Value as of December 31, 2015 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Total assets at fair value | $ | — | $ | — | $ | — | $ | — | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||
Commodity contracts | — | 3.1 | — | 3.1 | ||||||||||||
Total current liabilities at fair value | — | 3.2 | — | 3.2 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Commodity contracts | — | 0.4 | — | 0.4 | ||||||||||||
Total non-current liabilities at fair value | — | 0.4 | — | 0.4 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 3.6 | $ | — | $ | 3.6 |
|
ASSET DERIVATIVES | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2016 | 2015 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Prepaids and other current assets | $ | 0.6 | $ | — | |||||
Commodity contracts | Prepaids and other current assets | 0.9 | — | |||||||
Commodity contracts | Other non-current assets | 0.2 | — | |||||||
Total derivatives designated as hedging instruments | $ | 1.7 | $ | — | ||||||
Total asset derivatives | $ | 1.7 | $ | — |
ASSET DERIVATIVES | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2016 | 2015 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Prepaids and other current assets | $ | 0.6 | $ | — | |||||
Commodity contracts | Prepaids and other current assets | 0.9 | — | |||||||
Commodity contracts | Other non-current assets | 0.2 | — | |||||||
Total derivatives designated as hedging instruments | $ | 1.7 | $ | — | ||||||
Total asset derivatives | $ | 1.7 | $ | — |
LIABILITY DERIVATIVES | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2016 | 2015 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.8 | $ | 0.1 | |||||
Commodity contracts | Accrued expenses and other liabilities | 0.1 | 2.4 | |||||||
Commodity contracts | Other long-term liabilities | — | 0.3 | |||||||
Total derivatives designated as hedging instruments | $ | 0.9 | $ | 2.8 | ||||||
Derivatives NOT designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.2 | $ | — | |||||
Commodity contracts | Accrued expenses and other liabilities | — | 0.7 | |||||||
Commodity contracts | Other long-term liabilities | — | 0.1 | |||||||
Total derivatives NOT designated as hedging instruments | $ | 0.2 | $ | 0.8 | ||||||
Total liability derivatives | $ | 1.1 | $ | 3.6 |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Foreign currency exchange contracts | $ | (0.1 | ) | $ | 0.3 | $ | (0.1 | ) | Cost of sales | $ | — | $ | (1.4 | ) | $ | (0.9 | ) | |||||||||
Commodity contracts | 2.7 | (1.1 | ) | (0.5 | ) | Cost of sales | (1.5 | ) | (3.4 | ) | (0.3 | ) | ||||||||||||||
Total | $ | 2.6 | $ | (0.8 | ) | $ | (0.6 | ) | $ | (1.5 | ) | $ | (4.8 | ) | $ | (1.2 | ) |
Derivatives relationships (in millions) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
2016 | 2015 | 2014 | ||||||||||||
Commodity contracts | $ | — | $ | 0.1 | $ | 0.1 | Cost of sales | |||||||
Total | $ | — | $ | 0.1 | $ | 0.1 |
Derivatives NOT designated as hedging instruments (in millions) | Amount of gain (loss) recognized in income on derivative | Location of gain (loss) recognized in income on derivative | ||||||||||||
2016 | 2015 | 2014 | ||||||||||||
Foreign currency exchange contracts | $ | (0.2 | ) | $ | 0.1 | $ | — | Other expense (income) — net | ||||||
Commodity contracts — short-term | 0.8 | (0.7 | ) | — | Other expense (income) — net | |||||||||
Commodity contracts — long-term | — | (0.1 | ) | — | Other expense (income) — net | |||||||||
Total | $ | 0.6 | $ | (0.7 | ) | $ | — |
Units Hedged | |||||||||||||
Commodity | 2016 | 2015 | 2014 | Unit | Type | ||||||||
Aluminum | 1,663 | 1,215 | 1,657 | MT | Cash flow | ||||||||
Copper | 746 | 472 | 820 | MT | Cash flow | ||||||||
Natural gas | 56,416 | 49,396 | 56,792 | MMBtu | Cash flow | ||||||||
Steel | 8,663 | 11,073 | 12,634 | Short tons | Cash flow |
Units Hedged | |||||||||||
Currency | 2016 | 2015 | 2014 | Type | |||||||
Canadian Dollar | 26,130,000 | 587,556 | 7,984,824 | Cash flow | |||||||
European Euro | 11,261,848 | 231,810 | — | Cash flow | |||||||
British Pound | 4,191,763 | 113,115 | — | Cash flow | |||||||
Mexican Peso | 148,200,000 | 28,504,800 | 52,674,383 | Cash flow | |||||||
Thailand Baht | 23,231,639 | — | — | Cash flow | |||||||
Singapore Dollar | 4,375,000 | — | — | Cash flow |
Units Hedged | |||||||||||||
Commodity | 2016 | 2015 | 2014 | Unit | Type | ||||||||
Aluminum | 28 | — | — | MT | Cash flow | ||||||||
Steel | 340 | — | — | Short tons | Cash flow |
Units Hedged | |||||||||||||
Currency | 2016 | 2015 | 2014 | Recognized Location | Purpose | ||||||||
Canadian Dollar | — | 1,117,850 | 2,516 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
European Euro | 16,000,000 | — | 2,172,068 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
British Pound | 8,192,692 | — | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Mexican Peso | — | — | 3,151,000 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Swiss Franc | 3,150,000 | — | — | Other expense (income) — net | Accounts payable and receivable settlement |
|
(in millions) | 2016 | 2015 | ||||||
Inventories — gross: | ||||||||
Raw materials | $ | 68.2 | $ | 70.7 | ||||
Work-in-process | 18.3 | 18.7 | ||||||
Finished goods | 85.1 | 83.4 | ||||||
Total inventories — gross | 171.6 | 172.8 | ||||||
Excess and obsolete inventory reserve | (22.5 | ) | (23.5 | ) | ||||
Net inventories at FIFO cost | 149.1 | 149.3 | ||||||
Excess of FIFO costs over LIFO value | (3.5 | ) | (3.4 | ) | ||||
Inventories — net | $ | 145.6 | $ | 145.9 |
|
(in millions) | 2016 | 2015 | ||||||
Land | $ | 7.3 | $ | 7.3 | ||||
Building and improvements | 91.3 | 94.3 | ||||||
Machinery, equipment and tooling | 215.1 | 216.0 | ||||||
Furniture and fixtures | 5.8 | 6.2 | ||||||
Computer hardware and software | 52.9 | 51.2 | ||||||
Construction in progress | 11.2 | 9.8 | ||||||
Total cost | 383.6 | 384.8 | ||||||
Less accumulated depreciation | (274.5 | ) | (268.4 | ) | ||||
Property, plant and equipment — net | $ | 109.1 | $ | 116.4 |
|
(in millions) | Americas | EMEA | APAC | Total | ||||||||||||
Gross balance as of December 31, 2014 | $ | 1,172.7 | $ | 208.4 | $ | 7.4 | $ | 1,388.5 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2014 | $ | 860.5 | $ | 4.9 | $ | 7.4 | $ | 872.8 | ||||||||
Foreign currency impact | — | (0.1 | ) | (0.4 | ) | (0.5 | ) | |||||||||
Impact of acquisitions and divestitures | (27.9 | ) | — | 1.4 | (26.5 | ) | ||||||||||
Gross balance as of December 31, 2015 | $ | 1,144.8 | $ | 208.3 | $ | 8.4 | $ | 1,361.5 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2015 | $ | 832.6 | $ | 4.8 | $ | 8.4 | $ | 845.8 | ||||||||
Foreign currency impact | — | (0.1 | ) | (0.4 | ) | (0.5 | ) | |||||||||
Gross balance as of December 31, 2016 | $ | 1,144.8 | $ | 208.2 | $ | 8.0 | $ | 1,361.0 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2016 | $ | 832.6 | $ | 4.7 | $ | 8.0 | $ | 845.3 |
2016 | 2015 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 172.4 | $ | — | $ | 172.4 | $ | 175.1 | $ | — | $ | 175.1 | ||||||||||||
Customer relationships | 415.2 | (171.4 | ) | 243.8 | 415.2 | (150.4 | ) | 264.8 | ||||||||||||||||
Patents | 1.6 | (1.6 | ) | — | 1.7 | (1.6 | ) | 0.1 | ||||||||||||||||
Other intangibles | 140.7 | (72.5 | ) | 68.2 | 143.2 | (63.6 | ) | 79.6 | ||||||||||||||||
Total | $ | 729.9 | $ | (245.5 | ) | $ | 484.4 | $ | 735.2 | $ | (215.6 | ) | $ | 519.6 |
(in millions) | ||||
Year ending December 31: | ||||
2017 | $ | 31.2 | ||
2018 | 31.2 | |||
2019 | 30.9 | |||
2020 | 30.7 | |||
2021 | 30.7 | |||
Thereafter | 157.3 | |||
$ | 312.0 |
|
(in millions) | 2016 | 2015 | ||||||
Accounts payable: | ||||||||
Trade accounts payable | $ | 108.4 | $ | 121.7 | ||||
Total accounts payable | $ | 108.4 | $ | 121.7 | ||||
Accrued expenses and other liabilities: | ||||||||
Interest payable | $ | 15.7 | $ | — | ||||
Income taxes payable | 2.5 | 7.3 | ||||||
Employee related expenses | 29.8 | 24.5 | ||||||
Restructuring expenses | 3.3 | 16.8 | ||||||
Profit sharing and incentives | 14.2 | 3.9 | ||||||
Accrued rebates | 56.0 | 49.9 | ||||||
Deferred revenue - current | 4.4 | 3.8 | ||||||
Dividend payable to MTW | — | 10.2 | ||||||
Customer advances | 7.4 | 2.9 | ||||||
Product liability | 2.3 | 2.6 | ||||||
Miscellaneous accrued expenses | 38.9 | 43.0 | ||||||
Total accrued expenses and other liabilities | $ | 174.5 | $ | 164.9 |
|
Fiscal Quarter Ending | Consolidated Total Leverage Ratio Level (less than) | Actual Consolidated Total Leverage Ratio | Consolidated Interest Coverage Ratio Level (greater than) | Actual Consolidated Interest Coverage Ratio | ||||
March 31, 2016 | 6.25:1.00 | 5.49:1.00 | 2.00:1.00 | 5.91:1.00 | ||||
June 30, 2016 | 6.25:1.00 | 5.52:1.00 | 2.00:1.00 | 3.25:1.00 | ||||
September 30, 2016 | 6.00:1.00 | 5.29:1.00 | 2.25:1.00 | 3.17:1.00 | ||||
December 31, 2016 | 5.75:1.00 | 5.18:1.00 | 2.25:1.00 | 3.13:1.00 |
Year | Percentage | ||
2019 | 107.1 | % | |
2020 | 104.8 | % | |
2021 | 102.4 | % | |
2022 and thereafter | 100.0 | % |
(in millions) | 2016 | 2015 | ||||||
Revolving credit facility | $ | 63.5 | $ | — | ||||
Term Loan B | 825.0 | — | ||||||
Senior Notes due 2024 | 425.0 | — | ||||||
Other | 3.3 | 2.7 | ||||||
Total debt and capital leases, including current portion | 1,316.8 | 2.7 | ||||||
Less current portion of capital leases | (1.6 | ) | (0.4 | ) | ||||
Less unamortized debt issuance costs | (36.5 | ) | — | |||||
Total long-term debt and capital leases | $ | 1,278.7 | $ | 2.3 |
(in millions) | |||
Year ending December 31: | |||
2017 | $ | — | |
2018 | — | ||
2019 | — | ||
2020 | — | ||
2021 | 63.5 | ||
Thereafter | 1,250.0 | ||
$ | 1,313.5 |
|
(in millions) | 2016 | 2015 | 2014 | |||||||||
Domestic | $ | 30.5 | $ | 121.3 | $ | 121.8 | ||||||
Foreign | 74.3 | 75.1 | 63.9 | |||||||||
Total | $ | 104.8 | $ | 196.4 | $ | 185.7 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Current: | ||||||||||||
Federal and state | $ | 15.7 | $ | 51.1 | $ | 28.3 | ||||||
Foreign | 19.5 | 18.2 | 15.1 | |||||||||
Total current expense | 35.2 | 69.3 | 43.4 | |||||||||
Deferred: | ||||||||||||
Federal and state | (15.5 | ) | (27.9 | ) | (12.0 | ) | ||||||
Foreign | 5.6 | (2.1 | ) | (5.5 | ) | |||||||
Total deferred expense | (9.9 | ) | (30.0 | ) | (17.5 | ) | ||||||
Income taxes | $ | 25.3 | $ | 39.3 | $ | 25.9 |
2016 | 2015 | 2014 | |||||||
Federal income tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income provision | 1.5 | 1.4 | 1.4 | ||||||
Manufacturing and research incentives | (1.9 | ) | (1.7 | ) | (1.7 | ) | |||
Taxes on foreign income which differ from the U.S. statutory rate | (8.1 | ) | (3.9 | ) | (2.4 | ) | |||
Adjustments for unrecognized tax benefits | (1.5 | ) | 0.1 | 4.3 | |||||
Adjustments for valuation allowances | 2.5 | (13.8 | ) | 21.5 | |||||
Capital loss generation | — | — | (41.4 | ) | |||||
Business acquisitions and divestitures | — | 4.1 | — | ||||||
Out of period adjustments | (2.8 | ) | — | — | |||||
Other items | (0.6 | ) | (1.2 | ) | (2.8 | ) | |||
Effective tax rate | 24.1 | % | 20.0 | % | 13.9 | % |
(in millions) | 2016 | 2015 | ||||||
Non-current deferred tax assets (liabilities): | ||||||||
Inventories | $ | 7.2 | $ | 7.6 | ||||
Accounts receivable | 1.7 | 1.2 | ||||||
Property, plant and equipment | (2.7 | ) | (2.8 | ) | ||||
Intangible assets | (190.8 | ) | (218.9 | ) | ||||
Deferred employee benefits | 19.2 | 15.7 | ||||||
Product warranty reserves | 13.3 | 14.4 | ||||||
Product liability reserves | 0.9 | 1.0 | ||||||
Loss carryforwards | 43.8 | 84.9 | ||||||
Deferred revenue | 1.3 | 1.1 | ||||||
Other | 35.4 | 16.9 | ||||||
Non-current deferred tax liabilities | (70.7 | ) | (78.9 | ) | ||||
Less valuation allowance | (59.9 | ) | (80.1 | ) | ||||
Net non-current deferred tax liabilities | $ | (130.6 | ) | $ | (159.0 | ) |
(in millions) | 2016 | 2015 | ||||||
Income taxes receivable, included in prepaids and other current assets | $ | 2.9 | $ | 2.7 | ||||
Deferred tax asset, included in other non-current assets | $ | 7.2 | $ | 8.9 | ||||
Income taxes payable, included in accrued expenses and other liabilities | $ | (2.5 | ) | $ | (7.3 | ) | ||
Deferred income tax liability | $ | (137.8 | ) | $ | (167.9 | ) |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Balance at beginning of year | $ | 16.6 | $ | 16.6 | $ | 7.8 | ||||||
Additions based on tax positions related to the current year | 1.8 | 0.2 | 14.1 | |||||||||
Reductions based on settlements with taxing authorities | — | — | (2.8 | ) | ||||||||
Reductions for equity adjustment | (4.3 | ) | — | — | ||||||||
Reductions for lapse of statute | (1.6 | ) | (0.2 | ) | (2.5 | ) | ||||||
Balance at end of year | $ | 12.5 | $ | 16.6 | $ | 16.6 |
|
(in millions) | 2016 | 2015 | 2014 | |||||||||
Gain on sale of Kysor Panel Systems (1) | $ | — | $ | (9.9 | ) | $ | — | |||||
Gain on sale of investment property | — | (5.4 | ) | — | ||||||||
Gain on acquisition of Thailand joint venture (2) | — | (4.9 | ) | — | ||||||||
Amortization of deferred financing fees | 4.8 | — | — | |||||||||
Other (3) | 4.3 | (1.9 | ) | 2.1 | ||||||||
Other expense (income) — net | $ | 9.1 | $ | (22.1 | ) | $ | 2.1 | |||||
(1) See Note 4, "Divestitures" for further discussion on the sale of Kysor Panel Systems. | ||||||||||||
(2) See Note 3, "Acquisitions" for further discussion on the acquisition of the Thailand joint venture. | ||||||||||||
(3) For the year ended December 31, 2014, $1.1 million of other expense relates to a pension obligation settled by the Company on a previously disposed entity as described in Note 4, "Divestitures." Excluding this item, other expense (income) — net consists primarily of foreign currency gains and losses. |
|
(in millions) | 2016 | 2015 | ||||||
Foreign currency translation | $ | (9.8 | ) | $ | (7.9 | ) | ||
Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9 | 0.8 | (1.8 | ) | |||||
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3 | (34.4 | ) | (34.8 | ) | ||||
$ | (43.4 | ) | $ | (44.5 | ) |
(in millions) | Foreign Currency Translation | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2013 | $ | 34.2 | $ | (0.4 | ) | $ | (32.6 | ) | $ | 1.2 | ||||||
Other comprehensive loss before reclassifications | (16.9 | ) | (1.4 | ) | (4.8 | ) | (23.1 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 0.8 | 0.4 | 1.2 | ||||||||||||
Net current period other comprehensive loss | (16.9 | ) | (0.6 | ) | (4.4 | ) | (21.9 | ) | ||||||||
Balance at December 31, 2014 | 17.3 | (1.0 | ) | (37.0 | ) | (20.7 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (25.2 | ) | (3.8 | ) | 1.1 | (27.9 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | 3.0 | 1.1 | 4.1 | ||||||||||||
Net current period other comprehensive (loss) income | (25.2 | ) | (0.8 | ) | 2.2 | (23.8 | ) | |||||||||
Balance at December 31, 2015 | (7.9 | ) | (1.8 | ) | (34.8 | ) | (44.5 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (1.9 | ) | 1.7 | (1.1 | ) | (1.3 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | 0.9 | 1.5 | 2.4 | ||||||||||||
Net current period other comprehensive (loss) income | (1.9 | ) | 2.6 | 0.4 | 1.1 | |||||||||||
Balance at December 31, 2016 | $ | (9.8 | ) | $ | 0.8 | $ | (34.4 | ) | $ | (43.4 | ) |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | ||||
Gains and losses on cash flow hedges: | ||||||
Foreign currency exchange contracts | $ | — | Cost of sales | |||
Commodity contracts | (1.5 | ) | Cost of sales | |||
(1.5 | ) | Total before tax | ||||
0.6 | Tax expense | |||||
$ | (0.9 | ) | Net of tax | |||
Amortization of pension and postretirement items: | ||||||
Amortization of prior service cost | $ | — | (a) | |||
Actuarial losses | (2.5 | ) | (a) | |||
(2.5 | ) | Total before tax | ||||
1.0 | Tax benefit | |||||
$ | (1.5 | ) | Net of tax | |||
Total reclassifications for the period | $ | (2.4 | ) | Net of tax | ||
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). |
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | ||||
Gains and losses on cash flow hedges: | ||||||
Foreign currency exchange contracts | $ | (1.4 | ) | Cost of sales | ||
Commodity contracts | (3.4 | ) | Cost of sales | |||
(4.8 | ) | Total before tax | ||||
1.8 | Tax expense | |||||
$ | (3.0 | ) | Net of tax | |||
Amortization of pension and postretirement items: | ||||||
Amortization of prior service cost | $ | — | (a) | |||
Actuarial losses | (1.1 | ) | (a) | |||
(1.1 | ) | Total before tax | ||||
— | Tax benefit | |||||
$ | (1.1 | ) | Net of tax | |||
Total reclassifications for the period | $ | (4.1 | ) | Net of tax | ||
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). |
|
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||
Options outstanding as of January 1, 2016 | 1.4 | $ | 17.70 | ||||||||
Granted | 0.3 | 13.56 | |||||||||
Exercised | (0.1 | ) | 8.71 | ||||||||
Cancelled | (0.2 | ) | 19.41 | ||||||||
Options outstanding as of December 31, 2016 | 1.4 | $ | 13.69 | $ | 9.3 | ||||||
Options exercisable as of December 31, 2016 | 0.8 | $ | 13.16 | $ | 6.2 |
Range of Exercise Price | Outstanding Options | Weighted Average Remaining Contractual Life Years) | Weighted Average Exercise Price | Exercisable Options | Weighted Average Exercise Price | |||||||||||
$0.00 - $5.00 | 0.2 | 2.2 | $ | 3.51 | 0.2 | $ | 3.51 | |||||||||
$5.01 - $10.00 | 0.2 | 3.1 | 9.04 | 0.2 | 9.04 | |||||||||||
$10.01 - $15.00 | 0.6 | 8.3 | 13.36 | 0.1 | 13.36 | |||||||||||
$15.01 - $20.00 | 0.2 | 6.2 | 16.53 | 0.1 | 16.08 | |||||||||||
$20.01 - $25.00 | 0.1 | 3.5 | 23.32 | 0.1 | 23.37 | |||||||||||
$25.01+ | 0.1 | 1.1 | 31.27 | 0.1 | 31.27 | |||||||||||
1.4 | 5.8 | $ | 13.69 | 0.8 | $ | 13.16 |
2016 | 2015 | 2014 | |||||||
Expected life (years) | 6.0 | 6.0 | 6.0 | ||||||
Risk-free interest rate | 1.6 | % | 1.8 | % | 1.9 | % | |||
Expected volatility | 39.0 | % | 56.0 | % | 55.0 | % | |||
Expected dividend yield | — | % | 0.3 | % | 0.4 | % |
Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested as of January 1, 2016 | 0.2 | $ | 24.50 | ||||
Granted | 0.7 | 15.20 | |||||
Vested | — | — | |||||
Forfeited | — | — | |||||
Unvested as of December 31, 2016 | 0.9 | $ | 17.20 |
|
(in millions) | 2016 | 2015 | ||||||
Balance at the beginning of the period | $ | 40.0 | $ | 42.0 | ||||
Accruals for warranties issued | 22.1 | 24.2 | ||||||
Settlements made (in cash or in kind) | (25.1 | ) | (25.2 | ) | ||||
Currency translation impact | (0.7 | ) | (1.0 | ) | ||||
Balance at the end of the period | $ | 36.3 | $ | 40.0 |
|
(in millions) | 2016 | 2015 | ||||||
Balance at January 1 | $ | 16.8 | $ | 15.6 | ||||
Restructuring charges | 2.5 | 4.6 | ||||||
Use of reserve | (4.9 | ) | (3.4 | ) | ||||
Balance at December 31 | $ | 14.4 | $ | 16.8 |
|
Pension Plans | Postretirement Health and Other | |||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Service cost - benefits earned during the year | $ | 0.2 | $ | 0.4 | $ | 0.5 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost of projected benefit obligation | 8.3 | 6.5 | 8.1 | 0.4 | 0.1 | 0.2 | ||||||||||||||||||
Expected return on assets | (6.2 | ) | (5.4 | ) | (7.1 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost | — | — | — | — | — | (0.3 | ) | |||||||||||||||||
Amortization of actuarial net (gain) loss | 2.5 | 1.2 | 0.9 | — | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Curtailment gain recognized | — | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 4.8 | $ | 2.7 | $ | 2.4 | $ | 0.4 | $ | — | $ | (0.2 | ) | |||||||||||
Weighted average assumptions: | ||||||||||||||||||||||||
Discount rate | 3.9 | % | 3.5 | % | 4.4 | % | 3.9 | % | 3.7 | % | 4.5 | % | ||||||||||||
Expected return on plan assets | 3.7 | % | 3.5 | % | 4.5 | % | N/A | N/A | N/A | |||||||||||||||
Rate of compensation increase | 4.0 | % | 4.0 | % | 4.0 | % | 1.5 | % | 1.5 | % | 1.5 | % |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Change in Benefit Obligation | ||||||||||||||||
Benefit obligation, beginning of year | $ | 177.2 | $ | 195.0 | $ | 3.2 | $ | 2.8 | ||||||||
Service cost | 0.2 | 0.4 | — | — | ||||||||||||
Interest cost | 8.3 | 6.5 | 0.4 | 0.1 | ||||||||||||
Participant contributions | — | — | 0.4 | 0.3 | ||||||||||||
Plan combinations | 55.6 | — | 6.8 | — | ||||||||||||
Actuarial loss (gain) | 4.1 | (5.5 | ) | — | 0.7 | |||||||||||
Currency translation adjustment | (29.3 | ) | (8.8 | ) | — | (0.2 | ) | |||||||||
Benefits paid | (12.2 | ) | (10.4 | ) | (1.8 | ) | (0.5 | ) | ||||||||
Benefit obligation, end of year | $ | 203.9 | $ | 177.2 | $ | 9.0 | $ | 3.2 | ||||||||
Change in Plan Assets | ||||||||||||||||
Fair value of plan assets, beginning of year | 147.9 | 162.1 | — | — | ||||||||||||
Actual return on plan assets | 14.1 | 0.6 | — | — | ||||||||||||
Employer contributions | 6.1 | 3.1 | 1.4 | 0.2 | ||||||||||||
Participant contributions | — | — | 0.4 | 0.3 | ||||||||||||
Plan combinations | 34.1 | — | — | — | ||||||||||||
Currency translation adjustment | (26.2 | ) | (7.5 | ) | — | — | ||||||||||
Benefits paid | (12.2 | ) | (10.4 | ) | (1.8 | ) | (0.5 | ) | ||||||||
Fair value of plan assets, end of year | 163.8 | 147.9 | — | — | ||||||||||||
Funded status | $ | (40.1 | ) | $ | (29.3 | ) | $ | (9.0 | ) | $ | (3.2 | ) | ||||
Amounts Recognized in the Consolidated Balance Sheet at December 31 | ||||||||||||||||
Pension obligation (1) | $ | (40.1 | ) | $ | (29.3 | ) | $ | — | $ | — | ||||||
Postretirement health and other benefit obligations (2) | — | — | (9.0 | ) | (3.2 | ) | ||||||||||
Net amount recognized | $ | (40.1 | ) | $ | (29.3 | ) | $ | (9.0 | ) | $ | (3.2 | ) | ||||
Weighted-Average Assumptions | ||||||||||||||||
Discount rate | 3.1 | % | 3.7 | % | 3.5 | % | 3.9 | % | ||||||||
Rate of compensation increase | N/A | 4.0 | % | 1.5 | % | 1.5 | % | |||||||||
(1) As of December 31, 2016, the short-term portion of the pension obligation and postretirement health and other benefit obligation of $0.7 million and $1.0 million, respectively, are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets. |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net actuarial gain (loss) | $ | (40.5 | ) | $ | (35.1 | ) | $ | (0.5 | ) | $ | — | |||||
Total amount recognized | $ | (40.5 | ) | $ | (35.1 | ) | $ | (0.5 | ) | $ | — |
Change in assumption: | Estimated increase (decrease) in 2017 pension cost | Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2016 | Estimated increase (decrease) in 2017 other postretirement benefit costs | Estimated increase (decrease) in other postretirement benefit obligation for the year ended December 31, 2016 | ||||||||||||
0.5% increase in discount rate | $ | (0.4 | ) | $ | (13.4 | ) | $ | — | $ | (0.3 | ) | |||||
0.5% decrease in discount rate | 0.4 | 14.5 | — | 0.3 | ||||||||||||
0.5% increase in long-term return on assets | (0.8 | ) | N/A | N/A | N/A | |||||||||||
0.5% decrease in long-term return on assets | 0.8 | N/A | N/A | N/A | ||||||||||||
1% increase in medical trend rates | N/A | N/A | 0.1 | 0.6 | ||||||||||||
1% decrease in medical trend rates | N/A | N/A | (0.1 | ) | (0.5 | ) |
2016 | 2015 | |||||
Equity Securities | 20.8 | % | 10.2 | % | ||
Debt Securities | 34.5 | % | 28.9 | % | ||
Other | 44.7 | % | 60.9 | % | ||
100.0 | % | 100.0 | % |
Target Allocations | Weighted Average Asset Allocations | |||||
Equity Securities | 20.3 | % | 20.8 | % | ||
Debt Securities | 33.8 | % | 34.5 | % | ||
Other | 45.9 | % | 44.7 | % |
December 31, 2016 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 1.0 | $ | — | $ | — | $ | 1.0 | ||||||||
Insurance group annuity contracts | — | — | 72.2 | 72.2 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 51.6 | — | 51.6 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 34.1 | — | 34.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 4.9 | — | 4.9 | ||||||||||||
Total | $ | 1.0 | $ | 90.6 | $ | 72.2 | $ | 163.8 |
December 31, 2015 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||
Insurance group annuity contracts | — | — | 89.9 | 89.9 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 36.7 | — | 36.7 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 15.1 | — | 15.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 5.9 | — | 5.9 | ||||||||||||
Total | $ | 0.3 | $ | 57.7 | $ | 89.9 | $ | 147.9 |
Insurance Contracts Year Ended December 31, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Beginning Balance | $ | 89.9 | $ | 98.9 | ||||
Actual return on assets | 2.5 | 0.9 | ||||||
Benefit payments | (4.8 | ) | (5.4 | ) | ||||
Foreign currency impact | (15.4 | ) | (4.5 | ) | ||||
Ending Balance | $ | 72.2 | $ | 89.9 |
(in millions) | Pension Plans | Postretirement Health and Other | ||||||
2017 | $ | 11.7 | $ | 1.0 | ||||
2018 | 12.0 | 1.1 | ||||||
2019 | 12.4 | 1.1 | ||||||
2020 | 12.9 | 1.0 | ||||||
2021 | 13.2 | 0.9 | ||||||
2022-2026 | 71.9 | 3.6 |
Pension Plans | ||||||||
(in millions) | 2016 | 2015 | ||||||
Projected benefit obligation | $ | 203.9 | $ | 177.2 | ||||
Accumulated benefit obligation | 203.9 | 176.3 | ||||||
Fair value of plan assets | 163.8 | 147.9 |
|
(in millions) | |||
Year ending December 31: | |||
2017 | $ | 11.2 | |
2018 | 9.2 | ||
2019 | 7.6 | ||
2020 | 5.6 | ||
2021 | 3.6 | ||
Thereafter | 0.2 | ||
$ | 37.4 |
|
(in millions) | 2016 | 2015 | 2014 | |||||||||
Net sales: | ||||||||||||
Americas | $ | 1,186.6 | $ | 1,323.7 | $ | 1,301.9 | ||||||
EMEA | 287.6 | 281.6 | 315.1 | |||||||||
APAC | 190.9 | 191.1 | 198.2 | |||||||||
Elimination of intersegment sales | (208.5 | ) | (226.3 | ) | (233.9 | ) | ||||||
Total net sales | $ | 1,456.6 | $ | 1,570.1 | $ | 1,581.3 | ||||||
Segment Operating EBITA: | ||||||||||||
Americas | $ | 219.1 | $ | 189.9 | $ | 197.4 | ||||||
EMEA | 41.3 | 23.1 | 20.7 | |||||||||
APAC | 21.8 | 22.5 | 21.6 | |||||||||
Total segment Operating EBITA | 282.2 | 235.5 | 239.7 | |||||||||
Corporate and unallocated | (51.8 | ) | (44.2 | ) | (35.4 | ) | ||||||
Amortization expense | (31.2 | ) | (31.4 | ) | (31.8 | ) | ||||||
Earnings from operations | 199.2 | 159.9 | 172.5 | |||||||||
Interest expense | (85.2 | ) | (1.4 | ) | (1.3 | ) | ||||||
Interest (expense) income on notes with MTW — net | (0.1 | ) | 15.8 | 16.6 | ||||||||
Other (expense) income — net | (9.1 | ) | 22.1 | (2.1 | ) | |||||||
Earnings before income taxes | $ | 104.8 | $ | 196.4 | $ | 185.7 | ||||||
Operating EBITA % by segment (1) : | ||||||||||||
Americas | 18.5 | % | 14.3 | % | 15.2 | % | ||||||
EMEA | 14.4 | % | 8.2 | % | 6.6 | % | ||||||
APAC | 11.4 | % | 11.8 | % | 10.9 | % | ||||||
(1) Operating EBITA % in the section above is calculated by dividing the dollar amount of Operating EBITA by net sales for each respective segment. | ||||||||||||
Capital expenditures: | ||||||||||||
Americas | $ | 12.4 | $ | 8.4 | $ | 12.4 | ||||||
EMEA | 0.9 | 1.5 | 2.9 | |||||||||
APAC | 1.8 | 1.4 | 0.8 | |||||||||
Corporate | 0.9 | 1.9 | 9.2 | |||||||||
Total capital expenditures | $ | 16.0 | $ | 13.2 | $ | 25.3 | ||||||
Depreciation: | ||||||||||||
Americas | $ | 12.1 | $ | 14.3 | $ | 14.1 | ||||||
EMEA | 2.5 | 2.6 | 3.0 | |||||||||
APAC | 2.0 | 2.1 | 2.3 | |||||||||
Corporate | 0.7 | 0.6 | 1.8 | |||||||||
Total depreciation | $ | 17.3 | $ | 19.6 | $ | 21.2 | ||||||
Total assets by segment: | ||||||||||||
Americas | $ | 1,463.7 | $ | 1,495.2 | ||||||||
EMEA | 102.6 | 148.5 | ||||||||||
APAC | 110.8 | 96.5 | ||||||||||
Corporate | 92.0 | 13.8 | ||||||||||
Total assets | $ | 1,769.1 | $ | 1,754.0 |
(in millions) | 2016 | 2015 | 2014 | ||||||||||
Commercial foodservice whole goods | $ | 1,191.0 | $ | 1,277.2 | $ | 1,293.6 | |||||||
Aftermarket parts and support | 265.6 | 292.9 | 287.7 | ||||||||||
Total net sales | $ | 1,456.6 | $ | 1,570.1 | $ | 1,581.3 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Net sales by geographic area: | ||||||||||||
United States | $ | 945.7 | $ | 1,066.7 | $ | 996.4 | ||||||
Other Americas | 104.3 | 106.6 | 127.4 | |||||||||
EMEA | 242.0 | 237.2 | 280.3 | |||||||||
APAC | 164.6 | 159.6 | 177.2 | |||||||||
Total net sales by geographic area | $ | 1,456.6 | $ | 1,570.1 | $ | 1,581.3 | ||||||
Long-lived assets by geographic area (1): | 2016 | 2015 | ||||||||||
United States | $ | 1,313.3 | $ | 1,339.2 | ||||||||
Other Americas | 40.1 | 40.3 | ||||||||||
EMEA | 69.7 | 78.2 | ||||||||||
APAC | 30.6 | 34.8 | ||||||||||
Total long-lived assets by geographic area | $ | 1,453.7 | $ | 1,492.5 | ||||||||
(1) Excludes deferred tax assets of $7.2 million and $8.9 million recorded in "Other non-current assets" in the accompanying consolidated balance sheets as of December 31, 2016 and 2015, respectively. |
|
2016 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 325.5 | $ | 368.4 | $ | 384.0 | $ | 378.7 | ||||||||
Gross profit | 117.6 | 134.7 | 142.0 | 138.5 | ||||||||||||
Net earnings | 18.1 | 15.1 | 24.9 | 21.4 | ||||||||||||
Per share data | ||||||||||||||||
Earnings per common share — Basic | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 | ||||||||
Earnings per common share — Diluted | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 |
2015 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 345.4 | $ | 407.7 | $ | 425.3 | $ | 391.7 | ||||||||
Gross profit | 106.6 | 126.9 | 135.3 | 132.9 | ||||||||||||
Net earnings | 14.0 | 36.9 | 41.1 | 65.1 | ||||||||||||
Per share data (1) | ||||||||||||||||
Earnings per common share — Basic | $ | 0.10 | $ | 0.27 | $ | 0.30 | $ | 0.48 | ||||||||
Earnings per common share — Diluted | $ | 0.10 | $ | 0.27 | $ | 0.30 | $ | 0.48 |
|
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,070.0 | $ | 782.2 | $ | (395.6 | ) | $ | 1,456.6 | |||||||||
Cost of sales | 3.4 | 775.9 | 540.1 | (395.6 | ) | 923.8 | ||||||||||||||
Gross profit | (3.4 | ) | 294.1 | 242.1 | — | 532.8 | ||||||||||||||
Selling, general and administrative expenses | 35.5 | 152.9 | 101.7 | — | 290.1 | |||||||||||||||
Amortization expense | — | 28.4 | 2.8 | — | 31.2 | |||||||||||||||
Separation expense | 6.3 | — | 0.2 | — | 6.5 | |||||||||||||||
Restructuring expense | — | 1.6 | 0.9 | — | 2.5 | |||||||||||||||
Asset impairment expense | — | 2.9 | 0.4 | — | 3.3 | |||||||||||||||
Earnings (loss) from operations | (45.2 | ) | 108.3 | 136.1 | — | 199.2 | ||||||||||||||
Interest expense | 82.2 | 1.2 | 1.8 | — | 85.2 | |||||||||||||||
Interest expense on notes with MTW — net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Other (income) expense — net | (5.6 | ) | 19.6 | (4.9 | ) | — | 9.1 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 200.5 | 114.0 | — | (314.5 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 78.7 | 201.5 | 139.1 | (314.5 | ) | 104.8 | ||||||||||||||
Income taxes | (0.8 | ) | 1.0 | 25.1 | — | 25.3 | ||||||||||||||
Net earnings (loss) | $ | 79.5 | $ | 200.5 | $ | 114.0 | $ | (314.5 | ) | $ | 79.5 | |||||||||
Total other comprehensive income (loss), net of tax | 1.1 | 3.0 | 7.3 | (10.3 | ) | 1.1 | ||||||||||||||
Comprehensive income (loss) | $ | 80.6 | $ | 203.5 | $ | 121.3 | $ | (324.8 | ) | $ | 80.6 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,109.8 | $ | 809.9 | $ | (349.6 | ) | $ | 1,570.1 | |||||||||
Cost of sales | 0.1 | 803.6 | 614.3 | (349.6 | ) | 1,068.4 | ||||||||||||||
Gross profit | (0.1 | ) | 306.2 | 195.6 | — | 501.7 | ||||||||||||||
Selling, general and administrative expenses | 32.2 | 144.6 | 114.8 | — | 291.6 | |||||||||||||||
Amortization expense | — | 28.5 | 2.9 | — | 31.4 | |||||||||||||||
Separation expense | 4.4 | (0.5 | ) | 1.3 | — | 5.2 | ||||||||||||||
Restructuring expense | — | 1.9 | 2.7 | — | 4.6 | |||||||||||||||
Asset impairment expense | — | 9.0 | — | — | 9.0 | |||||||||||||||
Earnings from operations | (36.7 | ) | 122.7 | 73.9 | — | 159.9 | ||||||||||||||
Interest expense | — | 1.2 | 0.2 | — | 1.4 | |||||||||||||||
Interest income on notes with MTW — net | — | (14.9 | ) | (0.9 | ) | — | (15.8 | ) | ||||||||||||
Other income — net | (78.6 | ) | 77.8 | (21.3 | ) | — | (22.1 | ) | ||||||||||||
Equity in earnings (loss) of subsidiaries | 123.2 | 77.9 | — | (201.1 | ) | — | ||||||||||||||
Earnings before income taxes | 165.1 | 136.5 | 95.9 | (201.1 | ) | 196.4 | ||||||||||||||
Income taxes | 8.0 | 13.3 | 18.0 | — | 39.3 | |||||||||||||||
Net earnings (loss) | $ | 157.1 | $ | 123.2 | $ | 77.9 | $ | (201.1 | ) | $ | 157.1 | |||||||||
Total other comprehensive (loss) income, net of tax | (23.8 | ) | (27.7 | ) | (26.9 | ) | 54.6 | (23.8 | ) | |||||||||||
Comprehensive income (loss) | $ | 133.3 | $ | 95.5 | $ | 51.0 | $ | (146.5 | ) | $ | 133.3 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,051.7 | $ | 836.5 | $ | (306.9 | ) | $ | 1,581.3 | |||||||||
Cost of sales | — | 750.3 | 629.9 | (306.9 | ) | 1,073.3 | ||||||||||||||
Gross profit | — | 301.4 | 206.6 | — | 508.0 | |||||||||||||||
Selling, general and administrative expenses | 29.3 | 142.0 | 128.3 | — | 299.6 | |||||||||||||||
Amortization expense | — | 28.5 | 3.3 | — | 31.8 | |||||||||||||||
Separation expense | — | 0.1 | 0.3 | — | 0.4 | |||||||||||||||
Restructuring expense | — | 2.7 | (0.1 | ) | — | 2.6 | ||||||||||||||
Asset impairment expense | — | 1.1 | — | — | 1.1 | |||||||||||||||
Earnings from operations | (29.3 | ) | 127.0 | 74.8 | — | 172.5 | ||||||||||||||
Interest expense | — | 1.2 | 0.1 | — | 1.3 | |||||||||||||||
Interest income on notes with MTW — net | — | (17.3 | ) | 0.7 | — | (16.6 | ) | |||||||||||||
Other income — net | 7.8 | (4.2 | ) | (1.5 | ) | — | 2.1 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 192.0 | 65.7 | — | (257.7 | ) | — | ||||||||||||||
Earnings before income taxes | 154.9 | 213.0 | 75.5 | (257.7 | ) | 185.7 | ||||||||||||||
Income taxes | (4.9 | ) | 21.0 | 9.8 | — | 25.9 | ||||||||||||||
Net earnings (loss) | $ | 159.8 | $ | 192.0 | $ | 65.7 | $ | (257.7 | ) | $ | 159.8 | |||||||||
Total other comprehensive (loss) income, net of tax | (21.9 | ) | (17.7 | ) | (18.1 | ) | 35.8 | (21.9 | ) | |||||||||||
Comprehensive income (loss) | $ | 137.9 | $ | 174.3 | $ | 47.6 | $ | (221.9 | ) | $ | 137.9 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 | ||||||||||
Restricted cash | — | — | 6.4 | — | 6.4 | |||||||||||||||
Accounts receivable — net | 0.5 | — | 86.1 | (4.9 | ) | 81.7 | ||||||||||||||
Inventories — net | — | 74.3 | 71.3 | — | 145.6 | |||||||||||||||
Prepaids and other current assets | 0.9 | 4.5 | 8.5 | — | 13.9 | |||||||||||||||
Current assets held for sale | — | 2.3 | 4.5 | — | 6.8 | |||||||||||||||
Total current assets | 1.8 | 83.4 | 227.9 | (4.9 | ) | 308.2 | ||||||||||||||
Property, plant and equipment — net | 1.2 | 67.9 | 40.0 | — | 109.1 | |||||||||||||||
Goodwill | — | 832.4 | 12.9 | — | 845.3 | |||||||||||||||
Other intangible assets — net | — | 423.5 | 60.9 | — | 484.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,085.8 | — | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,780.3 | — | — | (3,780.3 | ) | — | ||||||||||||||
Other non-current assets | 2.7 | 5.1 | 19.7 | (5.4 | ) | 22.1 | ||||||||||||||
Total assets | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 64.6 | $ | 48.6 | $ | (4.9 | ) | $ | 108.4 | |||||||||
Accrued expenses and other liabilities | 14.1 | 97.5 | 62.9 | — | 174.5 | |||||||||||||||
Current portion of capital leases | — | 0.5 | 1.1 | — | 1.6 | |||||||||||||||
Product warranties | — | 18.4 | 9.5 | — | 27.9 | |||||||||||||||
Current liabilities held for sale | — | — | 0.7 | — | 0.7 | |||||||||||||||
Total current liabilities | 14.2 | 181.0 | 122.8 | (4.9 | ) | 313.1 | ||||||||||||||
Long-term debt and capital leases | 1,277.0 | 1.7 | — | — | 1,278.7 | |||||||||||||||
Deferred income taxes | 120.5 | — | 17.3 | — | 137.8 | |||||||||||||||
Pension and postretirement health obligations | 47.9 | 4.9 | — | (5.4 | ) | 47.4 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,344.8 | — | 741.0 | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 524.6 | — | (524.6 | ) | — | ||||||||||||||
Other long-term liabilities | 9.4 | 25.6 | 0.6 | — | 35.6 | |||||||||||||||
Total non-current liabilities | 3,815.3 | 556.8 | 763.2 | (3,635.8 | ) | 1,499.5 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | (43.5 | ) | 3,780.3 | (524.6 | ) | (3,255.7 | ) | (43.5 | ) | |||||||||||
Total liabilities and equity | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3.5 | $ | 28.5 | $ | — | $ | 32.0 | ||||||||||
Restricted cash | — | — | 0.6 | — | 0.6 | |||||||||||||||
Accounts receivable — net | — | — | 73.4 | (9.6 | ) | 63.8 | ||||||||||||||
Intercompany interest receivable | — | — | 4.2 | (4.2 | ) | — | ||||||||||||||
Intercompany short-term note receivable | — | — | 31.0 | (31.0 | ) | — | ||||||||||||||
Inventories — net | — | 80.2 | 65.7 | — | 145.9 | |||||||||||||||
Prepaids and other current assets | 1.2 | 2.3 | 9.0 | (2.2 | ) | 10.3 | ||||||||||||||
Total current assets | 1.2 | 86.0 | 212.4 | (47.0 | ) | 252.6 | ||||||||||||||
Property, plant and equipment — net | 0.9 | 71.2 | 44.3 | — | 116.4 | |||||||||||||||
Goodwill | — | 832.4 | 13.4 | — | 845.8 | |||||||||||||||
Other intangible assets — net | — | 452.1 | 67.5 | — | 519.6 | |||||||||||||||
Intercompany long-term note receivable | — | — | 42.4 | (42.4 | ) | — | ||||||||||||||
Due from affiliates | — | 3,074.9 | — | (3,074.9 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,579.8 | — | — | (3,579.8 | ) | — | ||||||||||||||
Other non-current assets | — | 3.1 | 71.8 | (59.0 | ) | 15.9 | ||||||||||||||
Long-term assets held for sale | — | 3.7 | — | — | 3.7 | |||||||||||||||
Total assets | $ | 3,581.9 | $ | 4,523.4 | $ | 451.8 | $ | (6,803.1 | ) | $ | 1,754.0 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | — | $ | 81.8 | $ | 49.5 | $ | (9.6 | ) | $ | 121.7 | |||||||||
Accrued expenses and other liabilities | 0.1 | 100.1 | 66.9 | (2.2 | ) | 164.9 | ||||||||||||||
Current portion of capital leases | — | 0.4 | — | — | 0.4 | |||||||||||||||
Intercompany interest payable | — | 4.2 | — | (4.2 | ) | — | ||||||||||||||
Intercompany short-term note payable | — | 31.0 | — | (31.0 | ) | — | ||||||||||||||
Product warranties | — | 23.8 | 10.5 | — | 34.3 | |||||||||||||||
Total current liabilities | 0.1 | 241.3 | 126.9 | (47.0 | ) | 321.3 | ||||||||||||||
Long-term capital leases | — | 2.3 | — | — | 2.3 | |||||||||||||||
Deferred income taxes | 155.4 | — | 63.5 | (51.0 | ) | 167.9 | ||||||||||||||
Pension and postretirement health obligations | 35.0 | 6.3 | — | (8.0 | ) | 33.3 | ||||||||||||||
Intercompany long-term note payable | — | 42.4 | — | (42.4 | ) | — | ||||||||||||||
Due to affiliates | 2,176.9 | — | 898.0 | (3,074.9 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 638.6 | — | (638.6 | ) | — | ||||||||||||||
Other long-term liabilities | 5.8 | 12.7 | 2.0 | — | 20.5 | |||||||||||||||
Total non-current liabilities | 2,373.1 | 702.3 | 963.5 | (3,814.9 | ) | 224.0 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | 1,208.7 | 3,579.8 | (638.6 | ) | (2,941.2 | ) | 1,208.7 | |||||||||||||
Total liabilities and equity | $ | 3,581.9 | $ | 4,523.4 | $ | 451.8 | $ | (6,803.1 | ) | $ | 1,754.0 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used for) provided by operating activities | $ | (102.7 | ) | $ | 111.5 | $ | 113.2 | $ | — | $ | 122.0 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (1.0 | ) | (8.0 | ) | (7.0 | ) | — | (16.0 | ) | |||||||||||
Changes in restricted cash | — | — | (6.0 | ) | — | (6.0 | ) | |||||||||||||
Proceeds from dispositions | — | — | 1.6 | — | 1.6 | |||||||||||||||
Intercompany investment | — | (104.4 | ) | (79.4 | ) | 183.8 | — | |||||||||||||
Net cash provided by (used for) investing activities | (1.0 | ) | (112.4 | ) | (90.8 | ) | 183.8 | (20.4 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 1,499.5 | 0.2 | 1.4 | — | 1,501.1 | |||||||||||||||
Repayments on long-term debt and capital leases | (186.0 | ) | (0.5 | ) | (0.3 | ) | — | (186.8 | ) | |||||||||||
Debt issuance costs | (41.3 | ) | — | — | — | (41.3 | ) | |||||||||||||
Dividend paid to MTW | (1,362.0 | ) | — | — | — | (1,362.0 | ) | |||||||||||||
Net transactions with MTW | (6.1 | ) | — | — | — | (6.1 | ) | |||||||||||||
Exercises of stock options | 16.2 | — | — | — | 16.2 | |||||||||||||||
Intercompany financing | 183.8 | — | — | (183.8 | ) | — | ||||||||||||||
Net cash (used for) provided by financing activities | 104.1 | (0.3 | ) | 1.1 | (183.8 | ) | (78.9 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (0.9 | ) | — | (0.9 | ) | |||||||||||||
Net increase in cash and cash equivalents | 0.4 | (1.2 | ) | 22.6 | — | 21.8 | ||||||||||||||
Balance at beginning of period | — | 3.5 | 28.5 | — | 32.0 | |||||||||||||||
Balance at end of period | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by operating activities | $ | 376.9 | $ | (137.6 | ) | $ | (96.3 | ) | $ | — | $ | 143.0 | ||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.8 | ) | (6.5 | ) | (5.9 | ) | — | (13.2 | ) | |||||||||||
Changes in restricted cash | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||
Business acquisitions, net of cash acquired | — | — | (5.3 | ) | — | (5.3 | ) | |||||||||||||
Proceeds from sale of business | — | 78.2 | — | — | 78.2 | |||||||||||||||
Intercompany investment | (193.2 | ) | — | — | 193.2 | — | ||||||||||||||
Net cash used for investing activities | (194.0 | ) | 71.7 | (11.8 | ) | 193.2 | 59.1 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from capital leases | — | 0.5 | — | — | 0.5 | |||||||||||||||
Repayments on capital leases | — | (0.7 | ) | — | — | (0.7 | ) | |||||||||||||
Net transactions with MTW | (182.9 | ) | — | — | — | (182.9 | ) | |||||||||||||
Intercompany financing | — | 66.9 | 126.3 | (193.2 | ) | — | ||||||||||||||
Net cash used for financing activities | (182.9 | ) | 66.7 | 126.3 | (193.2 | ) | (183.1 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (3.5 | ) | — | (3.5 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | 0.8 | 14.7 | — | 15.5 | |||||||||||||||
Balance at beginning of period | — | 2.7 | 13.8 | — | 16.5 | |||||||||||||||
Balance at end of period | $ | — | $ | 3.5 | $ | 28.5 | $ | — | $ | 32.0 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by operating activities | $ | 159.1 | $ | (54.0 | ) | $ | 95.1 | $ | — | $ | 200.2 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | — | (18.3 | ) | (7.0 | ) | — | (25.3 | ) | ||||||||||||
Intercompany investment | — | — | (82.7 | ) | 82.7 | — | ||||||||||||||
Net cash used for investing activities | — | (18.3 | ) | (89.7 | ) | 82.7 | (25.3 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from capital leases | — | 3.1 | — | — | 3.1 | |||||||||||||||
Repayments on capital leases | — | (3.4 | ) | — | — | (3.4 | ) | |||||||||||||
Net transactions with MTW | (166.7 | ) | — | — | — | (166.7 | ) | |||||||||||||
Intercompany financing | 7.6 | 75.1 | — | (82.7 | ) | — | ||||||||||||||
Net cash used for financing activities | (159.1 | ) | 74.8 | — | (82.7 | ) | (167.0 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | 2.5 | 4.4 | — | 6.9 | |||||||||||||||
Balance at beginning of period | — | 0.2 | 9.4 | — | 9.6 | |||||||||||||||
Balance at end of period | $ | — | $ | 2.7 | $ | 13.8 | $ | — | $ | 16.5 |
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